Instructions Morrow Enterprises Inc. manufactures bathroom foxtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2016, are as follows: Common Stock $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid In Capital in Excess of Stated Value-Common Stock $ 7.500,000 825,000 33,600,000 450,000 Retained Earnings Treasury Stock (25,000 shares, at cost) The following selected transactions occurred during the year: Jan Apr Jun 22 Pad cash dividends of $0.08 per share on the common stock. The dividend had been property recorded when declared on December 1 of the preceding fiscal year for $28,000. 10 issued 75.000 shares of common stock for $24 per share. 6 sold all of the treasury stock for $26 per share 5 Declared a 45 stock dividend on common stock, to be capitalized at the market price of the stock which is $25 per share 15 issued shares of stock for the stock 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 31 Closed the credit balance of the income summary account, $1,125.000 31 Closed the two dividends accounts to Retained Earnings Required: 1. Enter the January 1 balances in accounts for the stockholders'equity accounts listed 2 Journalize the entries to record the transactions, and post to me eight selected accounts. No postref is required in the journal. Refer to the Chart of Accounts for exact wording of accounts Instructions 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 $28,000 Issued 75,000 shares of common stock for $24 per share. 10 Jun 6 Sold all of the treasury stock for $26 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 shares of stock for the stock 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 31 Closed the credit balance of the income summary account, $1,125,000. Closed the two dividends accounts to Retained Earnings 31 Required: 1. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. 2. 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 3. Prepare a retained earning statement for the year ended December 31, 2016. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 4. Prepare the Stockholders' Equity section of the December 31, 2016, 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 Check My Work 10 more Check My Work uses remaining
