Question
I really only need help with part D- Stockholders Equity Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders equity accounts of Morrow Enterprises Inc., with
I really only need help with part D- Stockholders Equity
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, $20 stated value (500,000 shares authorized, 369,000 shares issued) | $7,380,000 |
Paid-In Capital in Excess of Stated ValueCommon Stock | 848,700 |
Retained Earnings | 33,497,000 |
Treasury Stock (23,300 shares, at a cost of $18 per share) | 419,400 |
The following selected transactions occurred during the year:
Jan. | 22 | Paid cash dividends of $0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $27,656. |
Apr. | 10 | Issued 72,000 shares of common stock for $24 per share. |
Jun. | 6 | Sold all of the treasury stock for $26 per share. |
Jul. | 5 | Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. |
Aug. | 15 | Issued the certificates for the dividend declared on July 5. |
Nov. | 23 | Purchased 30,000 shares of treasury stock for $20 per share. |
Dec. | 28 | Declared a $0.12-per-share dividend on common stock. |
31 | Closed the two dividends accounts to Retained Earnings. |
Required: | |||
A. | Enter the January 1 balances in T accounts for the stockholders equity accounts listed. | ||
B. | Journalize the entries to record the transactions, and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. | ||
C. | Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,090,000. For those boxes in which you must enter subtractive or negative numbers use a minus sign. The word Less is not required.* | ||
D. | Prepare the Stockholders Equity section of the December 31, 20Y5, balance sheet. For those boxes in which you must enter subtractive or negative numbers use a minus sign.*
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D. Prepare the Stockholders Equity section of the December 31, 20Y5 balance sheet. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Stockholders' Equity Score: 37/90 1Paid-in capital: Common stock, $20 stated value (500,000 shares authorized, 449,820 shares issued)8,996.400.00 3Excess over stated value 4 From sale of treasury stock 5 Total paid-in capital 6 Retained earnings 1.189.620.00 $186,400.00 10,372,420.00 $34,307,302.00 Total 44,697,722.00 Treasury stock 10 Total stockholders' equity (600,000.00) $44,079,722.00Step by Step Solution
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