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Entries for Selected Corporate Transactions Tolbert Enterprises Inc. manufactures bathroom fixtures The stockholders' equity accounts of Tolbert Enterprises Inc with balances on January

Entries for Selected Corporate Transactions

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 (300,000 shares authorized, 200,000 shares issued) $2,000,000
Paid-In Capital in Excess of Stated Value-Common Stock 400,000
Retained Earnings 4,540,000
Treasury Stock (20,000 shares, at cost) 300,000

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 $21,600.
Apr. 3. Issued 40,000 shares of common stock for $720,000.
June 6. Sold all of the treasury stock for $360,000.
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 13,000 shares of treasury stock for $260,000.
Dec. 27. Declared a $0.15-per-share dividend on common stock.
31. Closed the credit balance of the income summary account, $4,722,000.
31. Closed the two dividends accounts to Retained Earnings.

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.

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 $21,600.

Apr. 3. Issued 40,000 shares of common stock for $720,000.

June 6. Sold all of the treasury stock for $360,000.

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 13,000 shares of treasury stock for $260,000.

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

Dec. 31. Closed the credit balance of the income summary account, $4,722,000.

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

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

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

Jun 23 2020 View more View Less

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