Entries for Selected Corporate Transactions Morrow Enterprises Inc, manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2016, are as follows: Common Stock, $10 stated value (650,000 shares authorized, 440,000 shares issued) $4,400,000 Paid In Capital in Excess of Stated Value-Common Stock 850,000 Retained Earnings 9,990,000 Treasury Stock (44,000 shares, at cost) 660,000 The following selected transactions occurred during the year: Jan. 22. Pald 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 $51,480. Apr. 10. Issued 85,000 shares of common stock for $1,360,000. June 6. Sold all of the treasury stock for $18 per share. 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 shares of stock for the stock dividend declared on July 5 Nov. 23. Purchased 28,000 shares of treasury stock for $20 per share Dec. 28. Declared a $0.16-per-share dividend on common stock 31. Closed the credit balance of the income summary account, $10,390,000 31. Closed the two dividends accounts to Retained Earnings. eBook Calculator Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 850,000 Apr. 10 510,000 July 5 Dec. 31 Bal. Dec. 3 Retained Earnings pan. 1 Bal. Dec. 31 Dec. 31 Bal. 9,990,000 10,390,000 660 ,000 Jan. 1 Bal. Nov. 23 Dec. 31 Bal. Treasury Stock 660,000 June 6 560,000 560,000 Paid-In Capital from Sale of Treasury Stock June 132,000 Stock Dividends Distributable 210,000 July 5 Aug. 15 210,000 Stock Dividends Dec 31 July 5 Cash Dividends Dec. 28 Dec. 31 Account Debit Credit Date Apr. 10 Cash Common Stock 1,360,000 850,000 Paid In Capital in Excess of Stated Value-Common Stock 510,000 June 6. Sold all of the treasury stock for $18 per share. Account Debit Credit Date June 6 Cash 792,000 660,000 Treasury Stock Paid-In Capital from Sale of Treasury Stock 132,000 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. Debit Credit Date Account July 5 Stock Dividends Stock Dividends Distributable Pald-In Capital in Excess of Stated Value-Common Stock Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2016 Retained Earnings, January 1, 20Y6 Net Income Cash Dividends Stock Dividends Change in retained earnings Retained Earnings, December 31, 2016 4. Prepare the Stockholders' Equity section of the December 31, 2016, balance sheet. Morrow Enterprises Inc. Balance Sheet December 31, 2046 Stockholders' Equity Paid-in-Capital: Common Stock $10 stated value (650,000 shares authorized 6.000 banesis Check My Work Morrow Enterprises Inc. Balance Sheet December 31, 2016 Stockholders' Equity Paid-In-Capital: Common Stock, $10 stated value (650,000 shares authorized, 546,000 shares issued) 5,460,000 Excess of issue price over stated value 510,000 X From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (28,000 shares, at cost) 560,000 Total Stockholders' Equity
