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Problem - Adriana Company had a net income of $130,000 and paid cash dividends of $26,000 for 20--. Overman Company had a net loss of $25,000 and distributed a 10% stock dividend with a market value of $15,000.
Required -
1. Prepare the journal entries for Adriana as of December 31, 20--, to close Income Summary and Cash Dividends into Retained Earnings.
2. Prepare the journal entries for Overman as of December 31, 20--, to close Income Summary and Stock Dividends into Retained Earnings.
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