Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders\' equi

Question

Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Tolbert Enterprises Inc., with balances on January 1, 2014, are as follows:

The following selected transactions occurred during the year:

2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

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.

Common Stock, $10 stated value (400,000 shares authorized, 280,000 shares issued) $2,800,000 Paid-In Capital in Excess of Stated Value-Common Stock 550,000 Retained Earnings 6,360,000 Treasury Stock (28,000 shares, at cost) 392,000

Explanation / Answer

Common Stock A/c Jan 1 Balance          2,800,000 Apr 3.              550,000 Aug 15.              140,000 Dec 31. Balance          3,490,000 Paid in Capital in excess of stated value-common stock Jan 1 Balance              550,000 Apr 3.              440,000 Jul 1.              140,000 Dec 31. Balance          1,130,000 Retained Earning Dec 31.         280,000 Jan 1 Balance          6,360,000 Dec31.           44,540 Dec 27.          6,614,000 Dec 31. Balance        12,649,460 Treasury Stock Jan 1. Balance         392,000 June 6.              392,000 Nov 1.         342,000 Dec 31. Balance         342,000 Paid in Capital from sale of Treasury Stock June 6.                84,000                    -   Dec 31. Balance                84,000 Stock dividend distributable Aug 15.         280,000 Jul 1.              280,000                    -   Dec 31. Balance                84,000 Stock dividend Dec 31.         280,000 Jul 1.              280,000                    -   Dec 31. Balance                84,000 Cash dividend Aug 15.         280,000 Dec 27.                44,540                    -   Dec 31. Balance                84,000 Journal Entries Date Account title Dr $ Cr $ Jan4. Cash Dividend Payable                  35,280 Cash Dividend Payable                35,280 Apr 3. Cash               990,000 Common stock              550,000 Paid in Capital in excess of stated value-common stock        440,000.00 June 6. Cash               476,000 Treasury Stock              392,000 Paid in Capital from Treasury stock                84,000 Jul 1. Stock Dividend               280,000 Stock Dividend Distributable              280,000 Aug 15. Stock Dividend Distributable               280,000 Common stock              140,000 Paid in Capital in excess of stated value-common stock              140,000 Nov 10. Treasury Stock               342,000 Cash              342,000 Dec 27. Cash Dividend                  44,540 Cash Dividend Payable                44,540 Dec 31. Retained Earning          6,614,000 Income Statement            6,614,000 Dec 31. Stock Dividend              280,000 Cash Dividend                44,540 Retained Earning               324,540 3 Retaine earning Statement Balance Jan 1.2014            6,360,000 Transfer Net Income            6,614,000 Less: Stock Dividend               280,000 Less : Cash Dividend                  44,540 Balance Dec 31. 2014.         12,649,460 Stock Holders Equity Section Paid In Capital Common stock            3,490,000 Paid in Capital in excess of stated value-common stock            1,130,000 Paid In Capital from Treasury Stock               840,000 Total Paid in Capital            5,460,000 Retained Earning         12,649,460 TotAl         18,109,460 Deduct Treasury Stock at cost             (342,000) Total Stock holder's Equity         17,767,460

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