Question

I am having trouble with calculating these last entries correctly. There is also some confusion with the date for an entry after Dec. 28. Please just help me with completing the journal entries in the format I have listed, it will help me greatly if you write sny calculation also. Thank you

A Despons Accounts Journal Statement of Stockholders' Equity Stockholc Instructions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2046, are as follows: $7,380,000 Common stock. $20 stated value (500,000 shares authorized, 369,000 shares issued) Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (23,300 shares, at cost) 848,700 33.497,000 419,400 The following selected transactions occurred during the year: Jan. Apr. 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 $27.666. 10 issued 72,000 shares of common stock for $24 per share. 6 Sold all of the treasury stock for $26 per share. 5 Declared a 2% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share 15 issued the certificates for the dividend declared on July 5. 23 Purchased 30,000 shares of treasury stock for $20 per share. 28 Declared a $0.12-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings.

Answer 1

Credit Calculation Morrow Enterprises Date Account 22-Jan Dividends Payable Cash Debit 27,656 27,656 1,728,000 10-Apr Cash Common Stock Paid in Capital in Excess of Stated Value-Common Stock =72,000*24 =72,000*20 1,440,000 288,000 605,800 =23,300*26 6-Jun Cash Treasury Stock Paid in Capital from Treasury Stock 419,400 186,400 229,320 5-Jul Stock Dividends Stock Dividends Distributable Paid in Capital in Excess of Stated Value-Common Stock =8,820*26 176,400 =8,820*20 52,920 176,400 15-Aug Stock Dividends Distributable Common Stock 176,400 600,000 =30,000*20 23-Nov Treasury Stock Cash 600,000 50,378 As per below wkgs 28-Dec Cash Dividends Dividends Payable 50,378 279,698 31-Dec Retained Earnings Stock Dividends Cash Dividends 229,320 50,378 Workings Cash Dividends Opening Shares Shares Issued Subtotal 2% Stock Dividends Number of Common Shares Issued Treasury Stock Number of Common Shares 0/s Cash Dividend per share Cash Dividends -441,000*2% 369,000 72,000 441,000 8,820 449,820 (30,000) 419,820 0.12 50,378 =419,820*0.12

Note: As per information given in question. since Dec 28 entry mentions that dividends are declared,

we can only pass Dividend Payable entry and not Cash paid as its only declared.