Entries for Selected Corporate Transactions Tolbert Enterprises Inc. manufacture

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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 1, 2014, are as follows: Common Stock, $10 stated value (750,000 shares authorized, 500,000 shares issued) $5,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 950,000 Retained Earnings 11,350,000 Treasury Stock (50,000 shares, at cost) 700,000 The following selected transactions occurred during the year: Jan. 4. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $67,500. Apr. 3. Issued 95,000 shares of common stock for $1,520,000. June 6. Sold all of the treasury stock for $850,000. July 1. Declared a 4% 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 31,000 shares of treasury stock for $589,000. Dec. 27. Declared a $0.18-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $11,804,000. 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.

Entries for Selected Corporate Transaction:s 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 (750,000 shares authorized,$5,000,000 500,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (50,000 shares, at cost) The following selected transactions occurred during the year: Tolbert Enterprises Inc. manufactures bathroom fixtures, The stockholders' equity accounts of Tolbert Enterprises Inc., with balances on January 1, 2014, are as follows: 950,000 11,350,000 700,000 Jan. 4. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $67,500 Apr. 3. Issued 95,000 shares of common stock for $1,520,000 une 6. Sold all of the treasury stock for $850,000 July 1, Declared a 4% 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 31,000 shares of treasury stock for $589,000 Dec. 27. Declared a $0.18-per-share dividend on common stock 31. Closed the credit balance of the income summary account, $11,804,000 31. Closed the two dividends accounts to Retained Earnings. Required:

Explanation / Answer

Journal entries

To Paid in excess

(95000 shares issued)

To Paid in excess of capital

595,000@4% = 23,800 shares )

To Cash

31000@19

to Dividend payable

(595,000 +23,800 - 31000= 587,800@.18)

income summary

T- accounts

Common stock

Paid in capital in excess - common stock

Retained earnings

Treasury stock

Paid in capital from sale of treasury stock

Stock dividend distributable

Cash dividend

Retained earnings

Opening balance                            $11,350,000

less: dividends

Stock dividend    428,400

Cash dividend    105,804                    534,204

Add: income summary                  11,804,000

Closing balance                            $22,619,796

Stockholder's equity

Date Description Debit Credti Jan 4 Dividends payable $67,500 To Cash $67,500 April 3 Cash 1,520,000 to common stock 950,000

To Paid in excess

(95000 shares issued)

570,000 june 6 Cash $850,000 To Treasury stock $700,000 To paid in capital $150,000 July 1 Stock dividends 428,400 To Common stock distributable $238,000

To Paid in excess of capital

595,000@4% = 23,800 shares )

$190,400 Aug 15 Common stock distributable $238,000 To common stock $238,000 Nov 10 Treasury stock $589,000

To Cash

31000@19

$589,000 Dec 27 Dividends $105,804

to Dividend payable

(595,000 +23,800 - 31000= 587,800@.18)

$105,804

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