Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders\' equi
ID: 2461039 • Letter: T
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) 392,000Explanation / 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