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)	660,000

The following selected transactions occurred during the year:

Jan. 4.	Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $47,520.
Apr. 3.	Issued 85,000 shares of common stock for $1,360,000.
June 6.	Sold all of the treasury stock for $792,000.
July 1.	Declared a 5% 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 28,000 shares of treasury stock for $560,000.
Dec. 27.	Declared a $0.15-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.

Common Stock
		Jan. 1 Bal.	4,400,000
		SelectApr. 3June 6July 1Dec. 27Item 1
		SelectJuly 1Aug. 15Jan. 1Dec. 27Item 3
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	850,000
		SelectApr. 3June 6July 1Dec. 27Item 6
		SelectAug. 15June 6July 1Dec. 27Item 8
		Dec. 31 Bal.

Retained Earnings
SelectApr. 3June 6July 1Dec. 31Item 11		Jan. 1 Bal.	9,990,000
		SelectJan. 1June 6Nov. 10Dec. 31Item 13
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	660,000	SelectApr. 3June 6July 1Dec. 31Item 16
SelectJan. 1June 6Nov. 10Dec. 31Item 18
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock
		SelectJan. 1June 6Nov. 10Dec. 27Item 21

Stock Dividends Distributable
SelectJan. 1Aug. 15Nov. 10Dec. 31Item 23		SelectJan. 1July 1Nov. 10Dec. 31Item 25

Stock Dividends
SelectJan. 1July 1Nov. 10Dec. 31Item 27		SelectJan. 1July 1Nov. 10Dec. 31Item 29

Cash Dividends
SelectJan. 1July 1Nov. 10Dec. 27Item 31		SelectJan. 1July 1Nov. 10Dec. 31Item 33

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 $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $47,520.

Date	Account	Debit	Credit
Jan. 4	SelectCashCash DividendsCash Dividends PayableCommon StockStock Dividends DistributableItem 35
	SelectCashCash DividendsCash Dividends PayableCommon StockStock DividendsItem 37

Apr. 3. Issued 85,000 shares of common stock for $1,360,000.

Date	Account	Debit	Credit
Apr. 3	SelectCashCommon StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockTreasury StockItem 39
	SelectCashCash DividendsCommon StockStock DividendsTreasury StockItem 42
	SelectCashCash Dividends PayablePaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockPreferred StockItem 45

June 6. Sold all of the treasury stock for $792,000.

Date	Account	Debit	Credit
June 6	SelectCashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury StockItem 48
	SelectCashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury StockItem 51
	SelectCommon StockPaid-In Capital from Sale of Treasury StockPreferred StockRetained EarningsStock Dividends DistributableItem 54

July 1. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.

Date	Account	Debit	Credit
July 1	SelectCashCommon StockPaid-In Capital in Excess of Stated Value-Common StockStock DividendsStock Dividends DistributableItem 57
	SelectCashCommon StockPaid-in Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockItem 60
	SelectCashCash DividendsPaid-In Capital in Excess of Stated Value-Common StockStock DividendsTreasury StockItem 63

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

Date	Account	Debit	Credit
Aug. 15	SelectCashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableItem 66
	SelectCashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableItem 68

Nov. 10. Purchased 28,000 shares of treasury stock for $560,000.

Date	Account	Debit	Credit
Nov. 10	SelectCashCommon StockPaid-In Capital from Sale of Treasury StockStock DividendsTreasury StockItem 70
	SelectCashCommon StockPaid-In Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockItem 72

Dec. 27. Declared a $0.15-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 27	SelectCashCash DividendsCash Dividends PayableCommon StockTreasury StockItem 74
	SelectCashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableItem 76

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

Date	Account	Debit	Credit
Dec. 31	SelectCashCommon StockIncome SummaryPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsItem 78
	SelectCashCommon StockIncome SummaryPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsItem 80

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

Date	Account	Debit	Credit
Dec. 31	SelectCashCash DividendsRetained EarningsStock DividendsStock Dividends DistributableItem 82
	SelectCashCommon StockRetained EarningsStock DividendsStock Dividends DistributableItem 85
	SelectCashCash DividendsIncome SummaryRetained EarningsTreasury StockItem 88

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

Tolbert Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2014
SelectCashNet IncomeRetained Earnings, December 31, 2014Retained Earnings, January 1, 2014Item 91
SelectDecrease in Retained EarningsNet IncomeRetained Earnings, January 1, 2014Retained Earnings, December 31, 2014Item 93
SelectLess CashLess Cash DividendsLess Retained Earnings, January 1, 2014Item 95
SelectLess CashLess Retained Earnings, January 1, 2014Less Stock Dividends DistributableLess Stock DividendsItem 97
SelectDecrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 2014Retained Earnings, December 31, 2014Item 99
SelectDecrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 2014Retained Earnings, December 31, 2014Item 101

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

Tolbert Enterprises Inc. Stockholders' Equity As of December 31, 2014
Paid-In-Capital:
SelectCashCommon Stock, $10 Stated ValueRetained EarningsTreasury Stock (at Cost)Item 103
SelectCashExcess of Stated Value-Common StockRetained EarningsTreasury Stock (at Cost)Item 105
SelectCashFrom Sale of Treasury StockRetained EarningsTreasury Stock (at Cost)Item 107
Total Paid-In Capital
SelectExcess of Stated Value-Common StockFrom Sale of Treasury StockRetained EarningsTreasury Stock (Shares at Cost)Item 110
Total
SelectDeduct Paid-in-Capital in Excess of Stated Value-Common StockDeduct CashDeduct Retained EarningsDeduct Treasury Stock (at Cost)Item 113
Total Stockholders' Equity