question archive On January 1, 2017, Prasad SpA had the following equity accounts
On January 1, 2017, Prasad SpA had the following equity accounts
Subject:BusinessPrice: Bought3
On January 1, 2017, Prasad SpA had the following equity accounts. Share Capital - Ordinary (€25 par value, 48,000 shares issued and outstanding) €1,200,000 Share Premium-Ordinary 200,000 Retained Earnings 600,000 During the year, the following transactions occurred. Feb. 1 Declared a €1 cash dividend per share to shareholders of record on February 15, payable March 1. Mar: 1 Paid the dividend declared in February Apr. 1 Announced a 5-for-1 share split. Prior to the split, the market price per share was €36. July 1 Declared a 10% share dividend to shareholders of record on July 15, distribut- able July 31. On July 1, the market price was €7 per share. July 31 Issued the shares for the share dividend. Dec. 1 Declared a €0.40 per share dividend to shareholders of record on December 15, payable January 5, 2018. 31 Determined that net income for the year was €350,000. Instructions (a) Journalize the transactions and the closing entries for net income and dividends. (b) Enter the beginning balances, and post the entries to the equity accounts. (Note: Open additional equity accounts as needed.) (c) Prepare an equity section at December 31.
