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On December 31 2013 LeBlanc Corporation had t Record and post transactions he following shareholders equity accounts LEBLANC CORPORATION

On December 31, 2013, LeBlanc Corporation had t Record and post transactions; he following shareholders equity accounts: LEBLANC CORPORATION Balance Sheet (partial) December 31, 2013 Shareholders equity Common shares (unlimited number of shares authorized, 90,000 issued).............................................................$1,100,000 Retained earnings............................................................540,000 Total shareholders equity...............................................$1,640,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. July 1 Announced a 3-for-2 stock split. Th e market price per share on the date of the announcement was $15. Dec. 15 Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $10; on December 30, $12; and on January 15, $11. 31 Determined that profit before income tax for the year was $450,000. The company has a 30% income tax rate. Instructions (a) Journalize the transactions and closing entries. (b) Enter the beginning balances and post the entries in part (a) to the shareholders equity accounts. (c) Prepare the shareholders equity section of the balance sheet at December 31, 2014. Taking It Further Stock splits and stock dividends do not change the company s total assets. 

May 22 2020 View more View Less

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