Homework chapter 12

Morrow Enterprises Inc, manufactures bathroom foctures. Motrow Enterprises stockholders equity accounts, with balances on January 1, 2076, are as follows: $7,980,000 877 800 Common stock, 520 stated value (500,000 shares authored, 399,000 shares issued) Paid In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (22,500 shares, at cost) 34,554,000 382,500 The following selected transactions occurred during the year, Jan Apr Jun 22 Paid cash dividenda of $0.07 per share on the common stock The dividend had been property recorded when declared on December 1 of the preceding fiscal year for $26,355 10 Issued 73,000 shares of common stock for $23 per share 6 Sold all of the troussy stock for $26 per share Declared a 2% Stock dividend on common stock, to be capitalized at the market price of the stock which is $24 per share Issued the certificates for the dividend declared on July 5. Jul 5 Aug 15 Instructions Aug 15 Nov 23 Issued the certificates for the dividend declared on July 5. Purchased 30,000 shares of treasury stock for $20 per share Declared a 50.09 per-share dividend on common stock Closed the two dividends accounts to Retained Earnings Dec 28 31 Required: 1. Enter the January 1 balances in Taccounts for the stockholders equity accounts listed. If required, round your answers to the nearest dollar 2. Journalize the entries to record the transactions, and post to the eight selected accounts Assume that the closing entry for revenues and expenses has been made and post net income of $1,162,500 to the retained earnings account Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar 3. Prepare a statement of stockholders' equity for the year ended December 31, 20Y6 Assume that not income was 51,162,500 for the year ended December 31, 20Y6. For those boxes in which you must enter sobtracted or negative numbers use a minus sign there is an amount is zero, enter"0" 4. Prepare the 'Stockholders Equity section of the December 31, 2046, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign *Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries Chart of Accounts CHART OF ACCOUNTS Morrow Enterprises Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue w 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable EXPENSES 510 Cost of Goods Sold 141 Inventory 145 Office Supplies 151 Prepaid insurance 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 181 Land 193 Equiomet hart of Accounts 194 Accumulated Depreciation Equipment LIABILITIES 210 Accounts Payable 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 236 Stock dividends Distributable 311 Common Stock 313 Paid In Capital in Excess of Stated Value-Common Stock 315 Treasury Stock Amount Descriptions TAccounts Journal Chart of Accounts 261 Mortgage Note Payable EQUITY 236 Stock dividends Distributable 311 Common Stock > 313 Paid-in Capdal in Excess of Stated Value-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid in Capital in Excess of Par-Preferred Stock 331 Paid-in Capital trom Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock dividends Amount Descriptions Balances, January 1 Balances, December 31 Cash dividends Common stock, $20 stated value (500,000 shares authorized, 481,440 shares issued) Excess of issue price over stated value From sale of treasury stock Issued common stock Net income Net loss Purchase of treasury stock Sale of treasury stock Stock dividends Retained Earnings Amount Descriptions COMITTOIT SLUCA, SZU Siale value (, VVU Siidres duurzeu, 401,440 Shares iss Excess of issue price over stated value From sale of treasury stock Issued common stock Net income Net loss Purchase of treasury stock Sale of treasury stock Stock dividends Retained Earnings Total Total paid-in capital Total stockholders' equity Treasury stock (30,000 shares at cost) TAccounts 1. Enter the January 1 balances in accounts for the stockholders' equity accounts asted Post the journal entries from part 2 to the eight seeded accounts. Ir required, round your answers to the nearest dollar Common Stock 27 Paldin Capital in excess of Stated Value Common Stock Check My Work TAccounts Retained Earnings Treasury Stock naid coital com cola of Traun Stock T Accounts Paid In Capital from Sale of Treasury Stock Stock dividends Distributable Stock dividends Cash Dividends Journal 2. Journalice the entries to record the transactions and pollo the eight selected account Assume that the closing entry for me and experies has been made and post encome of 51.162.500 5 rotaned enga account. Refer to the Chart of Accounts for exact wording of accounts when required round your answer to the newest BOUW ACCOUNTING EQUATION POST DET CENT AT mes LOTY Statement of Stockholders Equity 2. Prepare a statement of stockholders equity for the year ended December 31, 2016. Assume that net income was $1,162,500 for the year ended December 31, 2018 For those bares which you must enter subtracted or equive numbers use a minus oign. If there is an amount is zero, enter y Rater to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries Morrow Enterprises Inc Statement of Stockholdery EU For the Year Ended December 31, 2016 Puid in Capitalin Paid Input Connon odions of from Sale of Trey Stod Realed 4. Prepare the "Stockholders' Eguty section of the December 31, 2016 balance sheet For those bores in which you must enter subtracted or negade rumber ute a minus sign Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries Morrow Enterprises Inc Balance Sheet December 31, 2016 1 StockholdersCouty 1 Paid in capital