P12-7A On January 1, 2008, Snider Corporation had the following stockholders’ equity

Price: $2.50


On January 1, 2008, Snider Corporation had the following stockholders’ equity accounts.

Common Stock ($10 par value, 90,000 shares issued and outstanding					900,000
Paid-in Capital in Excess of Par Value					200,000
Retained Earnings					540,000

During the year, the following transactions occurred.

Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable
February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable
May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2-for-1 stock split.The market price per share prior to the announcement
was $17. (The new par value is $5.)
Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15,
payable January 10, 2009.
31 Determined that net income for the year was $250,000.

Instructions
(a) Journalize the transactions and the closing entry for net income.
(b) Enter the beginning balances, and post the entries to the stockholders’ equity accounts.
(Note: Open additional stockholders’ equity accounts as needed.)
(c) Prepare a stockholders’ equity section at December 31.