Entries for Selected Corporate Transactions Tolbert Enterprises Inc. manufacture
ID: 2494142 • Letter: E
Question
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:
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.
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) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (28,000 shares, at cost) The following selected transactions occurred during the year: $2,800,000 6,360,000 392,000 Jan. 4. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280 Apr. 3. Issued 55,000 shares of common stock for $990,000. June 6. Sold all of the treasury stock for $476,000. 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 18,000 shares of treasury stock for $342,000. Dec. 27. Declared a $0.17-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $6,614,000 31. Closed the two dividends accounts to Retained Earnings.Explanation / Answer
Common Stock
Date
Amount
Date
Amount
Jan-1
2800,000
Apr-3
550,000
Aug-15
167,500
Decx-31
3517,500
Paid in Capital in Excess of Stated Value- Common Stock
Date
Amount
Date
Amount
Jan-1
550,000
Apr-3
440,000
Aug-15
167,500
Dec-31
1157,500
Retained Earnings
Date
Amount
Date
Amount
Dec-31
335,000
Jan-1
6360,000
Dec-31
56,737.50
Dec-31
6614,000
Dec-31
125,82,262.50
Stock Dividend Distributable
Date
Amount
Date
Amount
Aug-15
335,000
July-1
335,000
Stock Dividend
Date
Amount
Date
Amount
July-1
335,000
Dec-31
335,000
Cash Dividend
Date
Amount
Date
Amount
Dec-27
56,737.50
Dec-31
56,737.50
(‘2) Journal Entries
Date
Account Details and Explanation
Debit
Credit
July-1
Stock Dividend
335,000
Stock Dividend Distributable
335,000
Aug-15
Stock Dividend Distributable
335,000
Common Stock
167,500
Paid in Capital in Excess of Stated Value- Common Stock
167,500
Dec-27
Cash Dividend
56,737.50
Cash Dividend Payable
56,737.50
Dec-31
Retained Earnings
391,737.50
Stock Dividend
335,000
Cash Dividend
56,737.50
(‘3) Retained Earnings Statement for the year Ending on Dec 31,2014
Retained Earnings on Jan 1
6360,000
Add- Net Income
6614,000
Less- Cash Dividend
56,737.50
Less- Stock Dividend
335,000
Increase in Retained Earnings
6222,262.50
Retained Earnings on Dec 31
125,82,262.50
(‘4) Stockholders’ Equity as on Dec 31,2014
Paid in Capital
Common Stock , $10 stated value
3517,500
Excess of Stated Value- Common Stock
1157,500
Excess of Stated Value- Treasury Stock
84,000
Total Paid in Capital
4759,000
Retained Earnings
125,82,262.50
Total
173,41262.50
Less: Treasury stock at cost
342,000
Stockholders’ Equity
169,99,262.50
Common Stock
Date
Amount
Date
Amount
Jan-1
2800,000
Apr-3
550,000
Aug-15
167,500
Decx-31
3517,500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.