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College Accounting, Chapters 1-27 22nd Edition

College Accounting, Chapters 1-27 (22nd Edition)

Book Edition22nd Edition
Author(s)Heintz, Parry
End of Chapter
Self-Study Demonstration Problem
Self-Study Self-Study Test Questions True/False
Self-Study Self-Study Test Questions Multiple Choice
Self-Study Self-Study Test Questions Checkpoint Exercises
Applying Your Knowledge - Managing Your Writing
Applying Your Knowledge Ethics Case
Challenge Problem
Chapter 21, End of Chapter, Self-Study Demonstration Problem, Exercise 1
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On January 1, 20-1, Grant Company's retained earnings account had the following balances:

During the year ended December 31, 20-1, Grant completed the following selected transactions:

Apr. 15 Estimated that its 20-1 income tax will be $40,000. Based on this estimate, it will make four quarterly payments of $10,000 each on April 15, June 15, September 15, and December 15.
20 Declared semiannual dividend of $0.30 per share on common stock to shareholders of record on May 5, payable May 15. Currently, 50,000 shares of $3 par stock are outstanding.
May 15 Paid the cash dividend.
June 15 Made estimated tax payment of $10,000.
Sept. 15 Made estimated tax payment of $10,000.
Oct. 20 Declared a semiannual dividend of $0.30 per share on common stock to shareholders of record on November 5, payable on November 15.
Nov. 15 Paid the cash dividend.
16 Declared a 10% stock dividend to shareholders of record on December 2, distributable on December 10. Market value of the common stock was estimated at $7 per share.
Dec. 10 Issued certificates for common stock dividend.
15 Made estimated tax payment of $10,000. On December 31, the following adjusting and closing entries were made:
31 Grant's actual 20-1 income tax is $44,000. The $4,000 ($44,000-$40,000) additional amount owed will be paid by March 15, 20-2. Made adjustment for the additional amount owed.
31 Net income for 20-1 was $98,000. Closed the income summary account.
31 Closed the cash dividends and stock dividends accounts.

Prepare journal entries for the above transactions and for the adjusting and closing process.

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