On January 1, 2010, Werth Corporation had these stockholders' equity accounts. Common Stock ($10 par value, 80,000 shares issued and outstanding) $800,000 Paid-in Capital in Excess of Par Value 500,000 Retained Earnings 620,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15 the market price of the stock was $14 per share. May 15 Issued the shares for the stock dividend. Dec. 1 Declared a $0.55 per share dividend to stockholders of record on December 15, payable January 10, 2011. Dec. 31 Determined that net income for the year was $400,000. Journalize the transactions. (Include entries to close net income to Retained Earnings.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Account/Description Debit Credit Jan. 15 Dividends PayableCommon StockPaid-in Capital in Excess of Par ValueCommon Stock Dividends DistributableCash dividendsIncome SummaryStock dividendsRetained EarningsCash Common StockCash dividendsPaid-in Capital in Excess of Par ValueCommon Stock Dividends DistributableIncome SummaryStock dividendsDividends PayableCashRetained Earnings Feb. 15 Common StockCash dividendsCashPaid-in Capital in Excess of Par ValueIncome SummaryDividends PayableRetained EarningsCommon Stock Dividends DistributableStock dividends Common Stock Dividends DistributableCommon StockIncome SummaryCash dividendsStock dividendsDividends PayableRetained EarningsPaid-in Capital in Excess of Par ValueCash Apr.15 Paid-in Capital in Excess of Par ValueCommon StockCash dividendsCommon Stock Dividends DistributableIncome SummaryRetained EarningsStock dividendsCashDividends Payable Stock dividendsIncome SummaryCommon Stock Dividends DistributableCashDividends PayableRetained EarningsCommon StockPaid-in Capital in Excess of Par ValueCash dividends Paid-in Capital in Excess of Par ValueCommon Stock Dividends DistributableCashDividends PayableCash dividendsRetained EarningsCommon StockIncome SummaryStock dividends May 15 Income SummaryDividends PayableCommon StockPaid-in Capital in Excess of Par ValueCash dividendsCommon Stock Dividends DistributableStock dividendsCashRetained Earnings Common Stock Dividends DistributableIncome SummaryCashCommon StockCash dividendsDividends PayableRetained EarningsPaid-in Capital in Excess of Par ValueStock dividends Dec. 1 Income SummaryDividends PayableRetained EarningsCommon Stock Dividends DistributableStock dividendsPaid-in Capital in Excess of Par ValueCashCash dividendsCommon Stock Common StockDividends PayableCashStock dividendsRetained EarningsPaid-in Capital in Excess of Par ValueIncome SummaryCommon Stock Dividends DistributableCash dividends Dec. 31 Stock dividendsRetained EarningsCashCommon StockIncome SummaryCommon Stock Dividends DistributableCash dividendsPaid-in Capital in Excess of Par ValueDividends Payable Retained EarningsDividends PayableCommon StockCash dividendsPaid-in Capital in Excess of Par ValueCashCommon Stock Dividends DistributableIncome SummaryStock dividends (To close net income to retained earnings.) Dec. 31 Stock dividendsRetained EarningsCash dividendsDividends PayableIncome SummaryCommon Stock Dividends DistributableCashCommon StockPaid-in Capital in Excess of Par Value CashDividends PayablePaid-in Capital in Excess of Par ValueCommon StockStock dividendsCommon Stock Dividends DistributableIncome SummaryCash dividendsRetained Earnings (To close stock dividends to retained earnings.) Dec. 31 Retained EarningsIncome SummaryCashCash dividendsPaid-in Capital in Excess of Par ValueDividends PayableCommon StockCommon Stock Dividends DistributableStock dividends Retained EarningsCommon Stock Dividends DistributableCashStock dividendsCash dividendsCommon StockIncome SummaryPaid-in Capital in Excess of Par ValueDividends Payable (To close cash dividends to retained earnings.) Enter the beginning balances and post the entries to the stockholders' equity T accounts. (If answer is zero please enter 0, do not leave any fields blank.) Common Stock Retained Earnings 1/1 Bal. 1/1 Bal. 12/31 1/1 Bal. 5/15 5/15 12/31 12/31 12/31 Bal. 12/31 Bal. 12/31 Bal. 12/31 Bal. Paid-in Capital in Excess of Par Value Common Stock Dividends Distributable 1/1 Bal. 1/1 Bal. 5/15 4/15 4/15 4/15 12/31 Bal. 12/31 Bal. 12/31 Bal. 12/31 Bal. Cash Dividends Stock Dividends 1/15 1/15 4/15 4/15 12/1 12/31 12/31 12/31 12/31 Bal. 12/31 Bal. 12/31 Bal. 12/31 Bal. Prepare the stockholders' equity section of the balance sheet at December 31. WERTH CORPORATION Partial Balance Sheet December 31, 2010 Stockholders