Entries for Selected Corporate Transactions

Tolbert Enterprises Inc. manufactures bathroom fixtures. The The owners' equity in a corporation.stockholders' equity accounts of Tolbert Enterprises Inc., with balances on January 1, 2016, are as follows:

Common Stock, $10 stated value (800,000 shares authorized, 520,000 shares issued)	$5,200,000
Paid-In Capital in Excess of Stated Value-Common Stock	1,000,000
Retained Earnings	11,800,000
Treasury Stock (52,000 shares, at cost)	780,000

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 $60,840.
Apr. 3.	Issued 100,000 shares of common stock for $1,800,000.
June 6.	Sold all of the treasury stock for $936,000.
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 33,000 shares of treasury stock for $660,000.
Dec. 27.	Declared a $0.16-per-share dividend on common stock.
31.	Closed the credit balance of the income summary account, $12,272,000.
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. If required, round to one decimal place.

Common Stock
		Jan. 1 Bal.	5,200,000
		Apr. 3 Apr. 3 June 6 July 1 Dec. 27
		Aug. 15 July 1 Aug. 15 Jan. 1 Dec. 27
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	1,000,000
		Apr. 3 Apr. 3 June 6 July 1 Dec. 27
		July 1 Aug. 15 June 6 July 1 Dec. 27
		Dec. 31 Bal.

Retained Earnings
Apr. 3 Apr. 3 June 6 July 1 Dec. 31		Jan. 1 Bal.	11,800,000
		Nov. 10 Jan. 1 June 6 Nov. 10 Dec. 31
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	780,000	June 6 Apr. 3 June 6 July 1 Dec. 31
Dec. 31 Jan. 1 June 6 Nov. 10 Dec. 31
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock
		June 6 Jan. 1 June 6 Nov. 10 Dec. 27

Stock Dividends Distributable
Aug. 15 Jan. 1 Aug. 15 Nov. 10 Dec. 31		Dec. 31 Jan. 1 July 1 Nov. 10 Dec. 31

Stock Dividends
Jan. 1 Jan. 1 July 1 Nov. 10 Dec. 31		July 1 Jan. 1 July 1 Nov. 10 Dec. 31

Cash Dividends
Jan. 1 Jan. 1 July 1 Nov. 10 Dec. 27		Dec. 31 Jan. 1 July 1 Nov. 10 Dec. 31

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 Distributions of a corporation's earnings to stockholders.dividends of $0.13 per share on the The stock outstanding when a corporation has issued only one class of stock.common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,840.

Date	Account	Debit	Credit
Jan. 4	Cash Dividends Payable Cash Cash Dividends Cash Dividends Payable Common Stock Stock Dividends Distributable
	Cash Cash Cash Dividends Cash Dividends Payable Common Stock Stock Dividends

Apr. 3. Issued 100,000 shares of common stock for $1,800,000.

Date	Account	Debit	Credit
Apr. 3	Cash Cash Common Stock Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Stated Value-Common Stock Treasury Stock
	Common Stock Cash Cash Dividends Common Stock Stock Dividends Treasury Stock
	Paid-In Capital in Excess of Stated Value-Common Stock Cash Cash Dividends Payable Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Stated Value-Common Stock Preferred Stock

June 6. Sold all of the treasury stock for $936,000.

Date	Account	Debit	Credit
June 6	Cash Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock
	Treasury Stock Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock
	Paid-In Capital from Sale of Treasury Stock Common Stock Paid-In Capital from Sale of Treasury Stock Preferred Stock Retained Earnings Stock Dividends Distributable

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

Date	Account	Debit	Credit
July 1	Stock Dividends Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Stock Dividends Stock Dividends Distributable
	Stock Dividends Distributable Cash Common Stock Paid-in Capital from Sale of Treasury Stock Stock Dividends Distributable Treasury Stock
	Paid-In Capital in Excess of Stated Value-Common Stock Cash Cash Dividends Paid-In Capital in Excess of Stated Value-Common Stock Stock Dividends Treasury Stock

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

Date	Account	Debit	Credit
Aug. 15	Stock Dividends Distributable Cash Cash Dividends Payable Common Stock Stock Dividends Stock Dividends Distributable
	Common Stock Cash Cash Dividends Payable Common Stock Stock Dividends Stock Dividends Distributable

Nov. 10. Purchased 33,000 shares of treasury stock for $660,000.

Date	Account	Debit	Credit
Nov. 10	Treasury Stock Cash Common Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Treasury Stock
	Cash Cash Common Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Treasury Stock

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

Date	Account	Debit	Credit
Dec. 27	Cash Dividends Cash Cash Dividends Cash Dividends Payable Common Stock Treasury Stock
	Cash Dividends Payable Cash Cash Dividends Payable Common Stock Stock Dividends Stock Dividends Distributable

Dec. 31. Closed the credit balance of the income summary account, $12,272,000.

Date	Account	Debit	Credit
Dec. 31	Income Summary Cash Common Stock Income Summary Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings
	Retained Earnings Cash Common Stock Income Summary Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings

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

Date	Account	Debit	Credit
Dec. 31	Retained Earnings Cash Cash Dividends Retained Earnings Stock Dividends Stock Dividends Distributable
	Stock Dividends Cash Common Stock Retained Earnings Stock Dividends Stock Dividends Distributable
	Cash Dividends Cash Cash Dividends Income Summary Retained Earnings Treasury Stock

3. Prepare a A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year.retained earnings statement for the year ended December 31, 2016.

Tolbert Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2016
Retained Earnings, January 1, 2016 Cash Net Income Retained Earnings, December 31, 2016 Retained Earnings, January 1, 2016
Net Income Decrease in Retained Earnings Net Income Retained Earnings, January 1, 2016 Retained Earnings, December 31, 2016
Less Cash Dividends Less Cash Less Cash Dividends Less Retained Earnings, January 1, 2016
Less Stock Dividends Less Cash Less Retained Earnings, January 1, 2016 Less Stock Dividends Distributable Less Stock Dividends
Increase in Retained Earnings Decrease in Retained Earnings Increase in Retained Earnings Retained Earnings, January 1, 2016 Retained Earnings, December 31, 2016
Retained Earnings, December 31, 2016 Decrease in Retained Earnings Increase in Retained Earnings Retained Earnings, January 1, 2016 Retained Earnings, December 31, 2016

4. Prepare the Stockholders' Equity section of the December 31, 2016, balance sheet.

Tolbert Enterprises Inc. Stockholders' Equity As of December 31, 2016
Paid-In-Capital:
Common Stock, $10 Stated Value Cash Common Stock, $10 Stated Value Retained Earnings Treasury Stock (at Cost)
Excess of Stated Value-Common Stock Cash Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (at Cost)
From Sale of Treasury Stock Cash From Sale of Treasury Stock Retained Earnings Treasury Stock (at Cost)
Total Paid-In Capital
Retained Earnings Excess of Stated Value-Common Stock From Sale of Treasury Stock Retained Earnings Treasury Stock (Shares at Cost)
Total
Deduct Treasury Stock (at Cost) Deduct Cash Deduct Paid-in-Capital in Excess of Stated Value-Common Stock Deduct Retained Earnings Deduct Treasury Stock (at Cost)
Total Stockholders' Equity