Eureka enterprises Inc. manufactures bathroom fixtures. The stockholders equity accounts of the

Eureka
enterprises Inc. manufactures bathroom fixtures. The stockholders
equity accounts of the company, with balances on Jan. 1, 2008, are as
follows:

Common Stock, $10 stated value
(500,000 shares authorized, 380,000 shares issued).$3,800,000

Paid-in Capital in Excess of Stated
value.760,000
Retained Earnings..4,390,000
Treasury Stock (25,000 shares, at cost).500,000

The following selected transactions occurred during the year:

Jan.
10 Paid cash dividends of $0.20 per share on the common stock. The
dividend had been properly recorded when declared on Dec. 30 of the
proceeding fiscal year for $71,000.
Mar. 3 Issued 20,000 shares of common stock for $460,000.
May 21 Sold all of the treasury stock for $650,000.
July
1 Declared a 3% stock dividend on common stock, to be capitalized at
the market price of the stock, which is $30 per share.
Aug. 15 Issued the certificates for the dividend declared on July1.
Sep 30 Purchased 10,000 shares of treasury stock for $230,000
Dec. 27 Declared a $0.25 per share dividend on common stock
Dec. 31 Closed the credit balance of the income summary account, $639,500.
Dec. 31 Closed the two dividends accounts to Retained Earnings.

Instructions:
1.
Enter the Jan. 1 balances in T accounts for the stockholders equity
accounts listed. Also prepare T accounts for the following: Paid-In
Capital from the Sale of Treasury Stock; Stock Dividends Distributable;
Stock Dividends; Cash Dividends.
2. Journalize the entries to record the transactions, and post to eight selected accounts.
3. Prepare a retained earnings statement for the year ended Dec. 31, 2008.
4. Prepare the Stockholders Equity section of the Dec. 31, 2008 balance sheet