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 (800,000 shares authorized, 520,000 shares issued)	$5,200,000
Paid-In Capital in Excess of Stated Value-Common Stock	1,000,000
Retained Earnings	11,800,000
Treasury Stock (52,000 shares, at a cost of $15 per share)	780,000

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 $56,160.
Apr. 10.	Issued 100,000 shares of common stock for $16 per share.
June 6.	Sold all of the treasury stock for $936,000.
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.
Aug. 15.	Issued the certificates for the dividend declared on July 5.
Nov. 23.	Purchased 33,000 shares of treasury stock for $660,000.
Dec. 28.	Declared a $0.15-per-share dividend on common stock.
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
		Jan. 1 Bal.	5,200,000
			fill in the blank 2
			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.	1,000,000
			fill in the blank 7
			fill in the blank 9
		Dec. 31 Bal.	fill in the blank 10

Retained Earnings
	fill in the blank 12	Jan. 1 Bal.	11,800,000
			fill in the blank 14
		Dec. 31 Bal.	fill in the blank 15

Treasury Stock
Jan. 1 Bal.	780,000		fill in the blank 17
	fill in the blank 19
Dec. 31 Bal.	fill in the blank 20

Paid-In Capital from Sale of Treasury Stock
			fill in the blank 22

Stock Dividends Distributable
	fill in the blank 24		fill in the blank 26

Stock Dividends
	fill in the blank 28		fill in the blank 30

Cash Dividends
	fill in the blank 32		fill in the blank 34

2. Journalize the entries to record the transactions. 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 $56,160.

Date	Account	Debit	Credit
Jan. 22		fill in the blank 36	fill in the blank 37
		fill in the blank 39	fill in the blank 40

Apr. 10. Issued 100,000 shares of common stock for $16.

Date	Account	Debit	Credit
Apr. 10		fill in the blank 42	fill in the blank 43
		fill in the blank 45	fill in the blank 46
		fill in the blank 48	fill in the blank 49

June 6. Sold all of the treasury stock for $936,000.

Date	Account	Debit	Credit
June 6		fill in the blank 51	fill in the blank 52
		fill in the blank 54	fill in the blank 55
		fill in the blank 57	fill in the blank 58

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.

Date	Account	Debit	Credit
July 5		fill in the blank 60	fill in the blank 61
		fill in the blank 63	fill in the blank 64
		fill in the blank 66	fill in the blank 67

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

Date	Account	Debit	Credit
Aug. 15		fill in the blank 69	fill in the blank 70
		fill in the blank 72	fill in the blank 73

Nov. 23. Purchased 33,000 shares of treasury stock for $660,000.

Date	Account	Debit	Credit
Nov. 23		fill in the blank 75	fill in the blank 76
		fill in the blank 78	fill in the blank 79

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

Date	Account	Debit	Credit
Dec. 28		fill in the blank 81	fill in the blank 82
		fill in the blank 84	fill in the blank 85

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

Date	Account	Debit	Credit
Dec. 31		fill in the blank 87	fill in the blank 88
		fill in the blank 90	fill in the blank 91
		fill in the blank 93	fill in the blank 94

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 $12,272,000.

Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5
		$fill in the blank 96
	$fill in the blank 98
Dividends:
	fill in the blank 100
	fill in the blank 102
		fill in the blank 104
		$fill in the blank 106

4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet.

Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5
Paid-In-Capital:
	$fill in the blank 108
	fill in the blank 110
		$fill in the blank 112
		fill in the blank 114
Total Paid-In Capital			$fill in the blank 115
			fill in the blank 117
			fill in the blank 119
Total Stockholders' Equity			$fill in the blank 120