WindsorCorporation has outstanding3,002,000shares with common stock of a par value of $10each. The balance in its Retained Earnings account at January 1, 2017, was $24,126,000, and it then had Paid-in Capital in Excess of ParCommon Stock of $4,995,000. During 2017, the company's net income was $4,715,000. A cash dividend of $0.60a share was declared on May 5, 2017, and was paid June 30, 2017, and a6% stock dividend was declared on November 30, 2017, and distributed to stockholders of record at the close of business on December 31, 2017. You have been asked to advise on the proper accounting treatment of the stock dividend.

The existing stock of the company is quoted on a national stock exchange. The market price of the stock has been as follows.

October 31, 2017$32November 30, 2017$36December 31, 2017$40

(a)Prepare the journal entry to record (1) the declaration and (2) payment of the cash dividend.(b)Prepare the journal entry to record (1) the declaration and (2) distribution of the stock dividend.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)(1)May 5June 30Nov. 30Dec. 31

(a)(2)May 5June 30Nov. 30Dec. 31

(b)(1)May 5June 30Nov. 30Dec. 31

(b)(2)May 5June 30Nov. 30Dec. 31

Prepare the stockholders' equity section (including schedules of retained earnings and additional paid-in capital) of the balance sheet of Windsor Corporation for the year 2017 on the basis of the foregoing information. (List items that increase retained earnings first.)

Schedule of Additional Paid-in Capital

December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

$

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

Statement of Retained Earnings

December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

$

AddLess

: Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

AddLess

: Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

$

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues

$

WINDSOR CORPORATION

Stockholders' Equity

December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockRetained Earnings, January 1Retained Earnings, December 31Stock Dividends

$

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockRetained Earnings, January 1Retained Earnings, December 31Stock Dividends

Additional Paid-in CapitalAdditional Paid-in Capital, January 1Additional Paid-in Capital, December 31Cash DividendsCommon StockDividendsExcess of fair value over par value of common stockRetained Earnings, January 1Retained Earnings, December 31Stock Dividends

Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity

$