Instructions Morrow Enterprises Inc, manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2045, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) $ 7,500,000 Paid-In Capital in Excess of Stated Value - Common Stock Retained Earnings 33,600,000 Treasury Stock (25,000 shares, at a cost of $18 per share) 825,000 450,000 The following selected transactions occurred during the year Jan Apr Jun Jul 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 $20,000 10 Issued 75,000 shares of common stock for $24 per share. 6 Sold all of the treasury stock for $20 per share 5 Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share 15 Issued the certificates for the dividend declared on July 5. 23 Purchased 30,000 shares of treasury stock for $19 per share. 28 Declared a $0.10-per-share dividend on common stock Aug Nov. Die ructions Jul. 5 Aug 15 Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued the certificates for the dividend declared on July 5. Purchased 30,000 shares of treasury stock for $19 per share. Declared a $0.10-per-share dividend on common stock. Closed the two dividends accounts to Retained Earnings Nov. 23 Dec. 28 31 Required: A. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. B. Journalize the entries to record the transactions and post to the eight selected accounts. No post rel 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, 2045, Assume that Morrow Enterprises had net income for the year ended December 31, 2045, of $1,125,000. 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, 2045, balance sheet. For those boxes in which you must enter subtractive 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. FET marci JOURNAL Score: 0/249 ACCOUNTING EQUATION DATE DESTION POSTE IND SV toute EET 1 1 4 . 3 10 16 Shaded cells have feedback. D. Prepare the Stockholders'Equity section of the December 31, 2075 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: 0/90 1 Paid-in capital 3 3 4 5 1 9 10 C. Prepare a retained earnings statement for the year ended December 31, 20YS. Assume that Morrow Enterprises had not income for the year ended December 31, 2045, of $1,125,000. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. The word "Less" is not required. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Morrow Enterprises Score: 39/57 Retained Earnings Statement For the Year Ended December 31, 2015 1 Retained earnings, January 1, 2045 $35,600,000.00 2 Net income $1,125,000.00 3 Dividends: 4 Cash dividends 43,800.00 450,000.00 5 Stock dividends 631,200.00 Retained earnings Retained earnings, December 31, 2045 $44,436,200.00
