Ch 13 HWB Comprehensive Prob 75 pts Entries for Selected Corporate Transactions Morrow Enterprises Inc, manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2045, are as follows: 0.000 Common Stock, $10 stated value (350,000 shares authorized, 240,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock 50,000 > Retained Earnings 5.450.000 Treasury Stock (24,000 shares, at cost) The following selected transactions occurred during the year: Jan. 22. 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 $30,240. Apr 10. Issued 45,000 shares of common stock for $720,000. June 6. Sold all of the treasury stock for $432,000. 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 5. Nov. 23. Purchased 15,000 shares of treasury stock for $300,000. Dec. 21. Declared a $0.17-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $5,668,000. 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. Common Stock 720.000 1. Ine January 1 Daiances nave been entered in accounts for the stocknolders equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. Common Stock Bor 10 Paid-In Capital in Excess of Stated Value- Common Stock pec 31 Retained Earnings Dec. 31 Treasury Stock Jan. 1 B 360,000 Dec. 31 Bal Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends JUVETE E SES WIVUSOLUSU USLUGE amount box does not require an entry, leave it blank. Jan. 22. 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 $30,240. Apr. 10. Issued 45,000 shares of common stock for $720,000 Account June 6. Sold all of the treasury stock for $432,000. Account July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Account Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 15,000 shares of treasury stock for $300,000 Date Account Dec. 28. Declared a $0.17-per-share dividend on common stock. Account Debit Credit Date Dec. 28 Dec. 31. Closed the credit balance of the income summary account, $5,668,000. Date Account Debit Credit Dec. 31 Dec. 31. Closed the two dividends accounts to Retained Earnings. Account Debit Credit Date Dec. 31 3. Prepare a retained earnings statement for the year ended December 31, 2045. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 2045, of $5,668,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2015 Dividends: 4. Prepare the Stockholders' Equity section of the December 31, 2045, balance sheet. Morrow Enterprises Inc. Stockholders' Equity As of December 31, 2045 Paid-In-Capital: Total Paid-In Capital Total Total Stockholders Equity
