Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 fol $5,600,000 Common Stock, $10 stated value (850,000 shares authorized, 560,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock 1,050,000 12,710,000 Retained Earnings 840,000 Treasury Stock (56,000 shares, at cost) The following selected transactions occurred during the year: o 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 $70,560. Apr. 10. Issued 105,000 shares of common stock for $1,890,000. June 6. Sold all of the treasury stock for $1,008,000. July 5. Declared a 5% 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 $700,000. Dec. 28. Declared a $0.17-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. Common Stock Jan. 1 Bal. 5,600,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 1,050,000 Dec. 31 Bal. Retained Earnings Jan. 1 Bal. 12,710,000 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. 840,000 Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends Date Account Debit Credit Jan. 22 Cash Dividends Payable Cash Apr. 10. Issued 105,000 shares of common stock for $1,890,000 Date Account Debit Credit Apr. 10 June 6. Sold all of the treasury stock for $1,008,000. Date Account Debit Credit June 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

9th International Edition

1266285997, 978-1266285998

More Books

Students also viewed these Accounting questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago

Question

=+How is CSR different from strategic CSR?

Answered: 1 week ago