Morrow Enterprises Inc manufactures bathroom fixtures Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows Common stock, $20 stated value (500,000 shares authorized, 353,000 shares issued) $7,060,000 Paid In Capital in Excess of Stated ValueCommon Stock 811,900 Retained Earnings 33,598,000 Treasury Stock (25,500 shares, at cost) 484,500 The following selected transactions occurred during the year Jan 22 Paid cash dividends of $0 10 per share on the common stock The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,750 Apr 10 Issued 72,000 shares of common stock for $24 per share Jun 6 Sold all of the treasury stock for $25 per share Jul 5 Declared a 4 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 25,000 shares of treasury stock for $19 per share Dec 28 Declared a $0 09 per share dividend on common stock 31 Closed the two dividends accounts to Retained Earnings Required 1 Enter the January 1 balances in T accounts 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 $1,149,500 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 net income was $1,149,500 for the year ended December 31, 20Y6 For those boxes in which you must enter subtracted or negative numbers use a minus sign If there is an amount is zero, enter 0 4 Prepare the Stockholders Equity section of the December 31, 20Y6, 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 13, 2024

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: Common stock, $20 stated value

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows:

Common stock, $20 stated value (500,000 shares authorized, 353,000 shares issued)	$7,060,000
Paid-In Capital in Excess of Stated ValueCommon Stock	811,900
Retained Earnings	33,598,000
Treasury Stock (25,500 shares, at cost)	484,500

The following selected transactions occurred during the year:

Jan.	22	Paid cash dividends of $0.10 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,750.
Apr.	10	Issued 72,000 shares of common stock for $24 per share.
Jun.	6	Sold all of the treasury stock for $25 per share.
Jul.	5	Declared a 4% 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 25,000 shares of treasury stock for $19 per share.
Dec.	28	Declared a $0.09-per-share dividend on common stock.
	31	Closed the two dividends accounts to Retained Earnings.

Required:

Enter the January 1 balances in T accounts for the stockholders equity accounts listed. If required, round your answers to the nearest dollar.

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 $1,149,500 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.

Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was $1,149,500 for the year ended December 31, 20Y6. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter "0".*

Prepare the Stockholders Equity section of the December 31, 20Y6, 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.