I need help with the journal entry for Aug. 15. Here is an answer I got with some help, but I NEED TO KNOW where the number 1.04 comes from in order to solve the Aug. 15 entry. Here is the problem with answers:

Entries for selected corporate transaction Tolbert Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Tolbert enterprises Inc., with balances on January 1, 2012 are as follows: common stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) -$4,000,000 Paid-In capital in Excess of Stated Value - $750,000 Retained Earnings - $ 9,150,000 Treasury stock (40,000 shares, at cost) - $600,000 The following selected transactions occurred during the year: Jan 4. paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $46,800 Apr 3. Issued $75,000 shares of comon stock for $1,200,000 June 6. Sold all of the treasury stock for $725,000 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 25,000 shares of treasury stock for $500,000 Dec 27. Declared a $0.16-per-share dividend on common stock 31. Closed the credit balance of the income summary account, $950,000 31. Closed the two dividends accounts to Retained Earnings 1) Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: paid-In Capital from sale of treasury stock; stock dividends distributable; stock dividends; cash dividends 2) Journalize the entries to record the transactions, and post to the eight selected accounts. 3) prepare a retained earnings statement for the year ended December 31, 2012 4) Prepare the stockholders' Equity section of the December 31, 2012, balance sheet.

ANSWER IS BELOW!!

2) Journalize the entries to record the transactions, and post to the eight selected accounts. To begin with you need to know that there are 400,000 shares of common stock issued but, because of the Treasury Stock, only 360,000 shares outstanding. You only need to worry about the shares outstanding when calculating dividends. Jan 4. paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $46,800 Dr Dividends Payable 46,800 Cr Cash 46,800 Apr 3. Issued $75,000 shares of comon stock for $1,200,000 75,000 x $10 stated value = $750,000 Dr Cash 1,200,000 Cr Common Stock 750,000 Cr Paid-In Capital in Excess of Stated Value 450,000 *Note: There are now 360,000 + 75,000 = 435,000 shares outstanding. June 6. Sold all of the treasury stock for $725,000 Dr Cash 725,000 Cr Common Treasury Stock 600,000 Cr Paid-In Capital From Sale of Treasury Stock 125,000 *There are now 435,000 + 40,000 = 475,000 shares outstanding 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. 475,000 x 4% x $18 = $342,000 stock dividend 475,000 x 4% x $10 stated value = $190,000 stock dividend distributable Dr Stock Dividends 342,000 Cr Stock Dividends Distributable 190,000 Cr Paid-In Capital in Excess of Stated Value 152,000 Aug 15. Issued the certificates for the dividend declared on July 1. Dr Stock Dividends Distributable 190,000 Cr Common Stock 190,000 *There are now 475,000 x 1.04 = 494,000 shares outstanding Nov 10. Purchased 25,000 shares of treasury stock for $500,000 Dr Treasury Stock 500,000 Cr Cash 500,000 *There are now 494,000 - 25,000 = 469,000 shares outstanding Dec 27. Declared a $0.16-per-share dividend on common stock 469,000 x 0.16 = $75,040 dividend Dr Cash Dividends 75,040 Cr Dividends Payable 75,040 31. Closed the credit balance of the income summary account, $950,000 Dr Income Summary 950,000 Cr Retained Earnings 950,000 31. Closed the two dividends accounts to Retained Earnings Dr Retained Earnings 417,040 Cr Stock Dividends 342,000 Cr Cash Dividends 75,040