Entries for selected corporate transaction Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Tolbert enterprises Inc., with balances on January 1, 2012 are as follows: common stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) -$4,000,000 Paid-In capital in Excess of Stated Value - $750,000 Retained Earnings - $ 9,150,000 Treasury stock (40,000 shares, at cost) - $600,000 The following selected transactions occurred during the year: Jan 4. paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $46,800 Apr 3. Issued $75,000 shares of comon stock for $1,200,000 June 6. Sold all of the treasury stock for $725,000 July 1. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Aug 15. Issued the certificates for the dividend declared on July 1. Nov 10. Purchased 25,000 shares of treasury stock for $500,000 Dec 27. Declared a $0.16-per-share dividend on common stock 31. Closed the credit balance of the income summary account, $950,000 31. Closed the two dividends accounts to Retained Earnings 1) Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: paid-In Capital from sale of treasury stock; stock dividends distributable; stock dividends; cash dividends 2) Journalize the entries to record the transactions, and post to the eight selected accounts. 3) prepare a retained earnings statement for the year ended December 31, 2012 4) Prepare the stockholders' Equity section of the December 31, 2012, balance sheet.

Problem 13-4A Name: Section: Score: Key Code: Instructions 0% [Key code here] Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Common Stock Jan. 1 Bal. Treasury Stock Jan. 1 Bal. Dec. 31 Bal. Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Stated Value Jan. 1 Bal. Dec. 31 Bal. Stock Dividends Distributable Dec. 31 Bal. Dec. 31 Bal. Retained Earnings Jan. 1 Bal. Stock Dividends Dec. 31 Bal. Dec. 31 Bal. Cash Dividends Dec. 31 Bal. 2. Jan. 4 Place the larger of the two credits on this line. Apr. 3 Place the larger of the two credits on this line. June 6 Place the larger of the two credits on this line. July 1 Aug. 15 Nov. 10 Dec. 27 Place the larger of the two credits on this line. 31 31 3. TOLBERT ENTERPRISES INC. Retained Earnings Statement For the Period Ended December 31, 2012 Retained earnings (January 1, 2012) Net income Less: Cash dividends Stock dividends Increase in retained earnings Retained earnings (December 31, 2012) 4. TOLBERT ENTERPRISES INC. Balance Sheet December 31, 2012 Stockholders' Equity Paid-in capital: Common stock, $10 stated value (600,000 shares authorized, 494,000 shares issued) Excess of issue price over stated value From sale of treasury stock Total paid-in capital Retained earnings Total Deduct treasury stock (25,000 shares at cost) Total stockholders' equity