Entries for Selected Corporate Transactions

Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Tolbert Enterprises Inc., with balances on January 1, 2014, are as follows:

Common Stock, $10 stated value (650,000 shares authorized, 440,000 shares issued)	$4,400,000
Paid-In Capital in Excess of Stated Value-Common Stock	850,000
Retained Earnings	9,990,000
Treasury Stock (44,000 shares, at cost)	704,000

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 $51,480.
Apr. 3.	Issued 85,000 shares of common stock for $1,530,000.
June 6.	Sold all of the treasury stock for $836,000.
July 1.	Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.
Aug. 15.	Issued the certificates for the dividend declared on July 1.
Nov. 10.	Purchased 28,000 shares of treasury stock for $588,000.
Dec. 27.	Declared a $0.16-per-share dividend on common stock.
31.	Closed the credit balance of the income summary account, $10,390,000.
31.	Closed the two dividends accounts to Retained Earnings.

Required:

1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate.

2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

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 $51,480.

Apr. 3. Issued 85,000 shares of common stock for $1,530,000.

June 6. Sold all of the treasury stock for $836,000.

July 1. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.

Aug. 15. Issued the certificates for the dividend declared on July 1.

Nov. 10. Purchased 28,000 shares of treasury stock for $588,000.

Dec. 27. Declared a $0.16-per-share dividend on common stock.

Dec. 31. Closed the credit balance of the income summary account, $10,390,000.

Dec. 31. Closed the two dividends accounts to Retained Earnings.

3. Prepare a retained earnings statement for the year ended December 31, 2014.

4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet.

Common Stock
		Jan. 1 Bal.	4,400,000
		Dec. 31 Bal.
Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	850,000
		Dec. 31 Bal.
Retained Earnings
		Jan. 1 Bal.	9,990,000
		Dec. 31 Bal.
Treasury Stock
Jan. 1 Bal.	704,000
Dec. 31 Bal.
Paid-In Capital from Sale of Treasury Stock
Stock Dividends Distributable
Stock Dividends
Cash Dividends
Date	Account	Debit	Credit
Jan. 4
Date	Account	Debit	Credit
Apr. 3
Date	Account	Debit	Credit
June 6
Date	Account	Debit	Credit
July 1
Date	Account	Debit	Credit
Aug. 15
Date	Account	Debit	Credit
Nov. 10
Date	Account	Debit	Credit
Dec. 27
Date	Account	Debit	Credit
Dec. 31
Date	Account	Debit	Credit
Dec. 31
Tolbert Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2014
Tolbert Enterprises Inc. Stockholders' Equity As of December 31, 2014
Paid-In-Capital:
Total Paid-In Capital
Total
Total Stockholders' Equity