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At the beginning of 2014, Taylor Corporation had the following stockholders? equity balances in its general ledger:

Common stock, $10 Par Value	$2,500,000
Paid-in capital in excess of par	1,500,000
Paid-in capital, treasury stock	450,000
Paid-in capital, stock options	200,000
Retainedearnings	5,000,000
Treasury stock (15,000 shares)	(300,000)
Total stockholders? equity	$9,350,000

The paid-in capital from stock options relates to options granted on 1/1/10 to the CEO as incentive compensation. As of 1/1/14, the remaining expected benefit period is two years; expense has been and will be recorded evenly over the benefit period.

The following events were among the many occurring in 2014:

• January 2: Purchased 10,000 shares of its common stock for $16 per share. Taylor uses the cost method of accounting for treasury stock transactions.
• February 1: Declared and paid a cash dividend of $2 per share on the outstanding common stock.
• April 1: Issued 20,000 shares of $50 par, noncumulative, convertible 6% preferred stock for $60 per share, where one share of preferred stock is convertible into four shares of common stock.
• July 1: 2,000 shares of treasury stock that had been purchased in a prior year for $22 per share were re-issued for $21 per share.
• August 1: Holders of 8,000 shares of the preferred stock converted their shares into common stock when the market value of the common stock was $22 per share. Taylor uses the book value method of accounting for conversions.
• October 1: Declared and distributed a 30% stock dividend on common stock outstanding when the market price of the stock was $24 per share. Management review concludes to classify this as a large stock dividend.
• November 1: Corrected an error that was made several years ago, when land that had been purchased for $100,000 was inadvertently expensed.
• December 1: Declared and distributed a property dividend of land to preferred shareholders. The land had a fair value of $75,000 and a carrying value of $60,000.
• December 31: Recorded 2014 compensation expense related to the stock options.

The 2014 final net income, including the effects of any net income items listed above (and the 2014 tax effects on net income items), was $1,000,000. There were 500,000 shares authorized for both preferred and common stock.

REQUIRED:

1. All journal entries for the items (a. through i.) above. No explanations. Ignore tax effects.
2. The 12/31/14 Stockholders? Equity section. Use the format from the Frost Company example in Chapter 15 of the text.

Presentation and Analysis of Stockholders' Equity 847 other considerations. The example from the annual report of Alberto-Culver Company in Illustration 15-12 shows a note disclosing potential restrictions on retained earnings and dividends. ILLUSTRATION 15-12 Alberto-Culver Company Note 3 (in part): The $200 million revolving credit facility, the term note, and the receivables agreement impose restrictions on such items as total debt, working capital, dividend payments, treasury stock purchases, and interest expense. At year-end, the company was in compliance with these arrangements, and $220 million of consolidated retained earnings was not restricted as to the payment of dividends. Disclosure of Restrictions on Retained Earnings and Dividends PRESENTATION AND ANALYSIS OF STOCKHOLDERS' EQUITY Presentation Balance Sheet Illustration 15-13 shows a comprehensive stockholders' equity section from the balance sheet of Frost Company that includes most of the equity items we discussed in this chapter. 9 ILLUSTRATION 15-13 FROST COMPANY STOCKHOLDERS' EQUITY DECEMBER 31, 2014 Comprehensive Stockholders' Equity Presentation Capital stock Preferred stock, $100 par value, 7% cumulative, 100,000 shares authorized, 30,000 shares issued and outstanding Common stock, no-par, stated value $10 per share, 500,000 shares authorized, 400,000 shares issued Common stock dividend distributable, 20,000 shares $ 3,000,000 4,000,000 200,000 Total capital stock 7,200,000 Additional paid-in capital20 Excess over parpreferred Excess over stated valuecommon Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Cost of treasury stock (2,000 shares, common) Accumulated other comprehensive loss21 Total stockholders' equity 20 LEARNING OBJECTIVE Indicate how to present and analyze stockholders' equity. $150,000 840,000 990,000 8,190,000 4,360,000 12,550,000 190,000 360,000 $12,000,000 Accounting Trends and Techniques2012 reports that of its 500 surveyed companies, 465 had additional paid-in capital. 21 Companies may include a number of items in the \"Accumulated other comprehensive income (loss).\" Accounting Trends and Techniques2012 reports that of its 500 surveyed companies, 407 reported cumulative translation adjustments, 386 reported defined benefit postretirement plan adjustments (discussed in Chapter 20), 286 reported changes in the fair value of derivatives (discussed in Appendix 17A), and 218 reported unrealized losses/gains on certain investments (discussed in Chapter 17). A number of companies had more than one item