Entries for Selected Corporate Transactions

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows:

Common Stock, $10 stated value (850,000 shares authorized, 560,000 shares issued)	$5,600,000
Paid-In Capital in Excess of Stated Value-Common Stock	1,050,000
Retained Earnings	12,710,000
Treasury Stock (56,000 shares, at cost)	784,000

The following selected transactions occurred during the year:

Jan. 22.	Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,480.
Apr. 10.	Issued 105,000 shares of common stock for $1,890,000.
June 6.	Sold all of the treasury stock for $952,000.
July 5.	Declared a 4% 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 5.
Nov. 23.	Purchased 35,000 shares of treasury stock for $665,000.
Dec. 28.	Declared a $0.15-per-share dividend on common stock.
31.	Closed the credit balance of the income summary account, $13,218,000.
31.	Closed the two dividends accounts to Retained Earnings.

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
		Jan. 1 Bal.	5,600,000
		Apr. 10June 6July 5Dec. 28	fill in the blank 2
		July 5Aug. 15Jan. 1Dec. 28	fill in the blank 4
		Dec. 31 Bal.	fill in the blank 5

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	1,050,000
		Apr. 10June 6July 5Dec. 28	fill in the blank 7
		Aug. 15June 6July 5Dec. 28	fill in the blank 9
		Dec. 31 Bal.	fill in the blank 10

Retained Earnings
Apr. 10June 6July 5Dec. 31	fill in the blank 12	Jan. 1 Bal.	12,710,000
		Jan. 1June 6Nov. 23Dec. 31	fill in the blank 14
		Dec. 31 Bal.	fill in the blank 15

Treasury Stock
Jan. 1 Bal.	784,000	Apr. 10June 6July 5Dec. 31	fill in the blank 17
Jan. 1June 6Nov. 23Dec. 31	fill in the blank 19
Dec. 31 Bal.	fill in the blank 20

Paid-In Capital from Sale of Treasury Stock
		Jan. 1June 6Nov. 23Dec. 28	fill in the blank 22

Stock Dividends Distributable
Jan. 1Aug. 15Nov. 23Dec. 31	fill in the blank 24	Jan. 1July 5Nov. 23Dec. 31	fill in the blank 26

Stock Dividends
Jan. 1July 5Nov. 23Dec. 31	fill in the blank 28	Jan. 1July 5Nov. 23Dec. 31	fill in the blank 30

Cash Dividends
Jan. 1July 5Nov. 23Dec. 28	fill in the blank 32	Jan. 1July 5Nov. 23Dec. 31	fill in the blank 34

2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,480.

Date	Account	Debit	Credit
Jan. 22	CashCash DividendsCash Dividends PayableCommon StockStock Dividends Distributable	fill in the blank 36
	CashCash DividendsCash Dividends PayableCommon StockStock Dividends		fill in the blank 38

Apr. 10. Issued 105,000 shares of common stock for $1,890,000.

Date	Account	Debit	Credit
Apr. 10	CashCommon StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockTreasury Stock	fill in the blank 40	fill in the blank 41
	CashCash DividendsCommon StockStock DividendsTreasury Stock	fill in the blank 43	fill in the blank 44
	CashCash Dividends PayablePaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockPreferred Stock	fill in the blank 46	fill in the blank 47

June 6. Sold all of the treasury stock for $952,000.

Date	Account	Debit	Credit
June 6	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock	fill in the blank 49	fill in the blank 50
	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock	fill in the blank 52	fill in the blank 53
	Common StockPaid-In Capital from Sale of Treasury StockPreferred StockRetained EarningsStock Dividends Distributable	fill in the blank 55	fill in the blank 56

July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.

Date	Account	Debit	Credit
July 5	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockStock DividendsStock Dividends Distributable	fill in the blank 58	fill in the blank 59
	CashCommon StockPaid-in Capital from Sale of Treasury StockStock Dividends DistributableTreasury Stock	fill in the blank 61	fill in the blank 62
	CashCash DividendsPaid-In Capital in Excess of Stated Value-Common StockStock DividendsTreasury Stock	fill in the blank 64	fill in the blank 65

Aug. 15. Issued the certificates for the dividend declared on July 5.

Date	Account	Debit	Credit
Aug. 15	CashCash Dividends PayableCommon StockStock DividendsStock Dividends Distributable	fill in the blank 67
	CashCash Dividends PayableCommon StockStock DividendsStock Dividends Distributable		fill in the blank 69

Nov. 23. Purchased 35,000 shares of treasury stock for $665,000.

Date	Account	Debit	Credit
Nov. 23	CashCommon StockPaid-In Capital from Sale of Treasury StockStock DividendsTreasury Stock	fill in the blank 71
	CashCommon StockPaid-In Capital from Sale of Treasury StockStock Dividends DistributableTreasury Stock		fill in the blank 73

Dec. 28. Declared a $0.15-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 28	CashCash DividendsCash Dividends PayableCommon StockTreasury Stock	fill in the blank 75
	CashCash Dividends PayableCommon StockStock DividendsStock Dividends Distributable		fill in the blank 77

Dec. 31. Closed the credit balance of the income summary account, $13,218,000.

Date	Account	Debit	Credit
Dec. 31	CashCommon StockIncome SummaryPaid-In Capital in Excess of Stated Value-Common StockRetained Earnings	fill in the blank 79
	CashCommon StockIncome SummaryPaid-In Capital in Excess of Stated Value-Common StockRetained Earnings		fill in the blank 81

Dec. 31. Closed the two dividends accounts to Retained Earnings.

Date	Account	Debit	Credit
Dec. 31	CashCash DividendsRetained EarningsStock DividendsStock Dividends Distributable	fill in the blank 83	fill in the blank 84
	CashCommon StockRetained EarningsStock DividendsStock Dividends Distributable	fill in the blank 86	fill in the blank 87
	CashCash DividendsIncome SummaryRetained EarningsTreasury Stock	fill in the blank 89	fill in the blank 90

3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $13,218,000.