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, $10 stated value (850,000 shares authorized, 560,000 shares issued) $5,600,000 Paid In Capital in Excess of Stated Value Common Stock 1,050,000 Retained Earnings 12,710,000 Treasury Stock (56,000 shares, at a cost of $15 per share) 840,000 The following selected transactions occurred during the year Jan 22 Paid cash dividends of $0 14 per share on the common stock The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $70,560 Apr 10 Issued 105,000 shares of common stock for $16 per share June 6 Sold all of the treasury stock for $1,008,000 July 5 Declared a 5 stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share Aug 15 Issued the certificates for the dividend declared on July 5 Nov 23 Purchased 35,000 shares of treasury stock for $700,000 Dec 28 Declared a $0 17 per share dividend on common stock 31 Closed the two dividends accounts to Retained Earnings Common Stock Jan 1 Bal 5,600,000 Apr 10June 6July 5Dec 28Apr 10 fill in the blank 2 July 5Aug 15Jan 1Dec 28Aug 15 fill in the blank 4 Dec 31 Bal fill in the blank 5 Paid In Capital in Excess of Stated Value Common Stock Jan 1 Bal 1,050,000 Apr 10June 6July 5Dec 28Apr 10 fill in the blank 7 Aug 15June 6July 5Dec 28July 5 fill in the blank 9 Dec 31 Bal fill in the blank 10 Retained Earnings Apr 10June 6July 5Dec 31Dec 31 fill in the blank 12 Jan 1 Bal 12,710,000 Jan 1June 6Nov 23Dec 31Dec 31 fill in the blank 14 Dec 31 Bal fill in the blank 15 Treasury Stock Jan 1 Bal 840,000 Apr 10June 6July 5Dec 31June 6 fill in the blank 17 Jan 1June 6Nov 23Dec 31Nov 23 fill in the blank 19 Dec 31 Bal fill in the blank 20 Paid In Capital from Sale of Treasury Stock Jan 1June 6Nov 23Dec 28June 6 fill in the blank 22 Stock Dividends Distributable Jan 1Aug 15Nov 23Dec 31Aug 15 fill in the blank 24 Jan 1July 5Nov 23Dec 31July 5 fill in the blank 26 Stock Dividends Jan 1July 5Nov 23Dec 31July 5 fill in the blank 28 Jan 1July 5Nov 23Dec 31Dec 31 fill in the blank 30 Cash Dividends Jan 1July 5Nov 23Dec 28 fill in the blank 32 Jan 1July 5Nov 23Dec 31 fill in the blank 34 Jan 22 Paid cash dividends of $0 14 per share on the common stock The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $70,560 Date Account Debit Credit Jan 22 CashCash DividendsCash Dividends PayableCommon StockStock Dividends DistributableCash Dividends Payable fill in the blank 36 fill in the blank 37 CashCash DividendsCash Dividends PayableCommon StockStock DividendsCash fill in the blank 39 fill in the blank 40 Apr 10 Issued 105,000 shares of common stock for $16 Date Account Debit Credit Apr 10 CashCommon StockPaid In Capital from Sale of Treasury StockPaid In Capital in Excess of Stated Value Common StockTreasury StockCash fill in the blank 42 fill in the blank 43 CashCash DividendsCommon StockStock DividendsTreasury StockCommon Stock fill in the blank 45 fill in the blank 46 CashCash Dividends PayablePaid In Capital from Sale of Treasury StockPaid In Capital in Excess of Stated Value Common StockPreferred StockPaid In Capital in Excess of Stated Value Common Stock fill in the blank 48 fill in the blank 49 June 6 Sold all of the treasury stock for $1,008,000 Date Account Debit Credit June 6 CashCommon StockPaid In Capital in Excess of Stated Value Common StockRetained EarningsTreasury StockCash fill in the blank 51 fill in the blank 52 CashCommon StockPaid In Capital in Excess of Stated Value Common StockRetained EarningsTreasury StockTreasury Stock fill in the blank 54 fill in the blank 55 Common StockPaid In Capital from Sale of Treasury StockPreferred StockRetained EarningsStock Dividends DistributablePaid In Capital from Sale of Treasury Stock fill in the blank 57 fill in the blank 58 July 5 Declared a 5 stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share Date Account Debit Credit July 5 CashCommon StockPaid In Capital in Excess of Stated Value Common StockStock DividendsStock Dividends DistributableStock Dividends fill in the blank 60 fill in the blank 61 CashCommon StockPaid in Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockStock Dividends Distributable fill in the blank 63 fill in the blank 64 CashCash DividendsPaid In Capital in Excess of Stated Value Common StockStock DividendsTreasury StockPaid In Capital in Excess of Stated Value Common Stock fill in the blank 66 fill in the blank 67 Aug 15 Issued the certificates for the dividend declared on July 5 Date Account Debit Credit Aug 15 CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableStock Dividends Distributable fill in the blank 69 fill in the blank 70 CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableCommon Stock fill in the blank 72 fill in the blank 73 Nov 23 Purchased 35,000 shares of treasury stock for $700,000 Date Account Debit Credit Nov 23 CashCommon StockPaid In Capital from Sale of Treasury StockStock DividendsTreasury StockTreasury Stock fill in the blank 75 fill in the blank 76 CashCommon StockPaid In Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockCash fill in the blank 78 fill in the blank 79 Dec 28 Declared a $0 17 per share dividend on common stock Date Account Debit Credit Dec 28 CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash Dividends fill in the blank 81 fill in the blank 82 CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableCash Dividends Payable fill in the blank 84 fill in the blank 85 Dec 31 Closed the two dividends accounts to Retained Earnings Date Account Debit Credit Dec 31 CashCash DividendsRetained EarningsStock DividendsStock Dividends DistributableRetained Earnings fill in the blank 87 fill in the blank 88 CashCommon StockRetained EarningsStock DividendsStock Dividends DistributableStock Dividends fill in the blank 90 fill in the blank 91 CashCash DividendsIncome SummaryRetained EarningsTreasury StockCash Dividends fill in the blank 93 fill in the blank 94 3 Prepare a retained earnings statement for the year ended December 31, 20Y5 Assume that Morrow Enterprises Inc had net income for the year ended December 31, 20Y5, of $13,218,000 Morrow Enterprises Inc Retained Earnings Statement For the Year Ended December 31, 20Y5 CashNet IncomeRetained Earnings, December 31, 20Y5Retained Earnings, January 1, 20Y5Treasury Stock $fill in the blank 96 Decrease in Retained EarningsNet IncomeRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock $fill in the blank 98 Dividends CashCash DividendsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock fill in the blank 100 CashRetained Earnings, January 1, 20Y5Stock Dividends DistributableStock DividendsTreasury Stock fill in the blank 102 Decrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock fill in the blank 104 Decrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock $fill in the blank 106 4 Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet Morrow Enterprises Inc Stockholders' Equity As of December 31, 20Y5 Paid In Capital CashCash Dividends PayableCommon Stock, $10 Stated ValueRetained EarningsTreasury Stock (at Cost)Common Stock, $10 Stated Value $fill in the blank 108 CashCash Dividends PayableExcess of Stated Value Common StockRetained EarningsTreasury Stock (at Cost)Excess of Stated Value Common Stock fill in the blank 110 CashCash Dividends PayablePaid In Capital, Common StockRetained EarningsTreasury Stock (at Cost)Paid In Capital, Common Stock $fill in the blank 112 CashCash Dividends PayableFrom Sale of Treasury StockRetained EarningsTreasury Stock (at Cost)From Sale of Treasury Stock fill in the blank 114 Total Paid In Capital $fill in the blank 115 Cash Dividends PayableExcess of Stated Value Common StockFrom Sale of Treasury StockRetained EarningsTreasury Stock (Shares at Cost)Retained Earnings fill in the blank 117 CashCash Dividends PayablePaid In Capital in Excess of Stated Value Common StockRetained EarningsTreasury Stock (at Cost)Treasury Stock (at Cost) fill in the blank 119 Total Stockholders' Equity $fill in the blank 120

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 31, 2024

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,

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, $10 stated value (850,000 shares authorized, 560,000 shares issued)	$5,600,000
Paid-In Capital in Excess of Stated Value-Common Stock	1,050,000
Retained Earnings	12,710,000
Treasury Stock (56,000 shares, at a cost of $15 per share)	840,000

The following selected transactions occurred during the year:

Jan. 22.	Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $70,560.
Apr. 10.	Issued 105,000 shares of common stock for $16 per share.
June 6.	Sold all of the treasury stock for $1,008,000.
July 5.	Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
Aug. 15.	Issued the certificates for the dividend declared on July 5.
Nov. 23.	Purchased 35,000 shares of treasury stock for $700,000.
Dec. 28.	Declared a $0.17-per-share dividend on common stock.
31.	Closed the two dividends accounts to Retained Earnings.

Common Stock
		Jan. 1 Bal.	5,600,000
		Apr. 10June 6July 5Dec. 28Apr. 10	fill in the blank 2
		July 5Aug. 15Jan. 1Dec. 28Aug. 15	fill in the blank 4
		Dec. 31 Bal.	fill in the blank 5

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	1,050,000
		Apr. 10June 6July 5Dec. 28Apr. 10	fill in the blank 7
		Aug. 15June 6July 5Dec. 28July 5	fill in the blank 9
		Dec. 31 Bal.	fill in the blank 10

Retained Earnings
Apr. 10June 6July 5Dec. 31Dec. 31	fill in the blank 12	Jan. 1 Bal.	12,710,000
		Jan. 1June 6Nov. 23Dec. 31Dec. 31	fill in the blank 14
		Dec. 31 Bal.	fill in the blank 15

Treasury Stock
Jan. 1 Bal.	840,000	Apr. 10June 6July 5Dec. 31June 6	fill in the blank 17
Jan. 1June 6Nov. 23Dec. 31Nov. 23	fill in the blank 19
Dec. 31 Bal.	fill in the blank 20

Paid-In Capital from Sale of Treasury Stock
		Jan. 1June 6Nov. 23Dec. 28June 6	fill in the blank 22

Stock Dividends Distributable
Jan. 1Aug. 15Nov. 23Dec. 31Aug. 15	fill in the blank 24	Jan. 1July 5Nov. 23Dec. 31July 5	fill in the blank 26

Stock Dividends
Jan. 1July 5Nov. 23Dec. 31July 5	fill in the blank 28	Jan. 1July 5Nov. 23Dec. 31Dec. 31	fill in the blank 30

Cash Dividends
Jan. 1July 5Nov. 23Dec. 28	fill in the blank 32	Jan. 1July 5Nov. 23Dec. 31	fill in the blank 34

Jan. 22. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $70,560.

Date	Account	Debit	Credit
Jan. 22	CashCash DividendsCash Dividends PayableCommon StockStock Dividends DistributableCash Dividends Payable	fill in the blank 36	fill in the blank 37
	CashCash DividendsCash Dividends PayableCommon StockStock DividendsCash	fill in the blank 39	fill in the blank 40

Apr. 10. Issued 105,000 shares of common stock for $16.

Date	Account	Debit	Credit
Apr. 10	CashCommon StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockTreasury StockCash	fill in the blank 42	fill in the blank 43
	CashCash DividendsCommon StockStock DividendsTreasury StockCommon Stock	fill in the blank 45	fill in the blank 46
	CashCash Dividends PayablePaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Stated Value-Common StockPreferred StockPaid-In Capital in Excess of Stated Value-Common Stock	fill in the blank 48	fill in the blank 49

June 6. Sold all of the treasury stock for $1,008,000.

Date	Account	Debit	Credit
June 6	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury StockCash	fill in the blank 51	fill in the blank 52
	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury StockTreasury Stock	fill in the blank 54	fill in the blank 55
	Common StockPaid-In Capital from Sale of Treasury StockPreferred StockRetained EarningsStock Dividends DistributablePaid-In Capital from Sale of Treasury Stock	fill in the blank 57	fill in the blank 58

July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.

Date	Account	Debit	Credit
July 5	CashCommon StockPaid-In Capital in Excess of Stated Value-Common StockStock DividendsStock Dividends DistributableStock Dividends	fill in the blank 60	fill in the blank 61
	CashCommon StockPaid-in Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockStock Dividends Distributable	fill in the blank 63	fill in the blank 64
	CashCash DividendsPaid-In Capital in Excess of Stated Value-Common StockStock DividendsTreasury StockPaid-In Capital in Excess of Stated Value-Common Stock	fill in the blank 66	fill in the blank 67

Aug. 15. Issued the certificates for the dividend declared on July 5.

Date	Account	Debit	Credit
Aug. 15	CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableStock Dividends Distributable	fill in the blank 69	fill in the blank 70
	CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableCommon Stock	fill in the blank 72	fill in the blank 73

Nov. 23. Purchased 35,000 shares of treasury stock for $700,000.

Date	Account	Debit	Credit
Nov. 23	CashCommon StockPaid-In Capital from Sale of Treasury StockStock DividendsTreasury StockTreasury Stock	fill in the blank 75	fill in the blank 76
	CashCommon StockPaid-In Capital from Sale of Treasury StockStock Dividends DistributableTreasury StockCash	fill in the blank 78	fill in the blank 79

Dec. 28. Declared a $0.17-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 28	CashCash DividendsCash Dividends PayableCommon StockTreasury StockCash Dividends	fill in the blank 81	fill in the blank 82
	CashCash Dividends PayableCommon StockStock DividendsStock Dividends DistributableCash Dividends Payable	fill in the blank 84	fill in the blank 85

Dec. 31. Closed the two dividends accounts to Retained Earnings.

Date	Account	Debit	Credit
Dec. 31	CashCash DividendsRetained EarningsStock DividendsStock Dividends DistributableRetained Earnings	fill in the blank 87	fill in the blank 88
	CashCommon StockRetained EarningsStock DividendsStock Dividends DistributableStock Dividends	fill in the blank 90	fill in the blank 91
	CashCash DividendsIncome SummaryRetained EarningsTreasury StockCash Dividends	fill in the blank 93	fill in the blank 94

3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $13,218,000.

Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5
CashNet IncomeRetained Earnings, December 31, 20Y5Retained Earnings, January 1, 20Y5Treasury Stock		$fill in the blank 96
Decrease in Retained EarningsNet IncomeRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock	$fill in the blank 98
Dividends:
CashCash DividendsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock	fill in the blank 100
CashRetained Earnings, January 1, 20Y5Stock Dividends DistributableStock DividendsTreasury Stock	fill in the blank 102
Decrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock		fill in the blank 104
Decrease in Retained EarningsIncrease in Retained EarningsRetained Earnings, January 1, 20Y5Retained Earnings, December 31, 20Y5Treasury Stock		$fill in the blank 106

4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet.

Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5
Paid-In-Capital:
CashCash Dividends PayableCommon Stock, $10 Stated ValueRetained EarningsTreasury Stock (at Cost)Common Stock, $10 Stated Value	$fill in the blank 108
CashCash Dividends PayableExcess of Stated Value-Common StockRetained EarningsTreasury Stock (at Cost)Excess of Stated Value-Common Stock	fill in the blank 110
CashCash Dividends PayablePaid-In Capital, Common StockRetained EarningsTreasury Stock (at Cost)Paid-In Capital, Common Stock		$fill in the blank 112
CashCash Dividends PayableFrom Sale of Treasury StockRetained EarningsTreasury Stock (at Cost)From Sale of Treasury Stock		fill in the blank 114
Total Paid-In Capital			$fill in the blank 115
Cash Dividends PayableExcess of Stated Value-Common StockFrom Sale of Treasury StockRetained EarningsTreasury Stock (Shares at Cost)Retained Earnings			fill in the blank 117
CashCash Dividends PayablePaid-In-Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock (at Cost)Treasury Stock (at Cost)			fill in the blank 119
Total Stockholders' Equity			$fill in the blank 120