Question

eBook Calculator Print Item Entries for Selected Corporate Transactions Entries for Selected Corporate Transactions 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, $10 stated value (800,000 shares authorized, 520,000 shares issued) Pald-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (52,000 shares, at cost) $5,200,000 1,000,000 11,800,000 780,000 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 $65,520. Apr. 10. Issued 100,000 shares of common stock for $1,600,000. June 6. Sold all of the treasury stock for $936,000. July 5. Declared a 4% 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 33,000 shares of treasury stock for $660,000. Dec. 28. Declared a $0.17-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $12,272,000. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in Taccounts for the stockholders' equity accounts. Record the above transactions in the Taccounts and provide the December 31 balance where appropriate. Check My Work All work saved. Save and Exit Submit Assignment for Grading

Answer 1

Morrow Enterprises Inc.
Date	General,Journal	Debit	Credit
22-Jan	Cash dividend Payable	$           65,520.00
	To Cash(520000-52000)*.14		$                  65,520.00
	(Being amount of cash dividend payable on (Shares issued-Treasury stock)*.14
10-Apr	Cash(100000*$16)	$     16,00,000.00
	To Common Stock(100000*$10)		$            10,00,000.00
	To Paid in Capital excess of Par(100000*$6)		$               6,00,000.00
	(Issued 100000 shares @$16 )
06-Jun	Cash(52000*$18)	$       9,36,000.00
	To Treasury Stock(52000*$15)		$               7,80,000.00
	To Paid in Capital excess of Par on sale of Treasury stock(52000*$3)		$               1,56,000.00
	(Sold all 52000 treasury stock @$18)
05-Jul	Stock Dividend(520000+100000)*4%*$18	$       4,46,400.00
	To Stock Dividend Distributable(24800*$10)		$               2,48,000.00
	To Paid in capital excess of par-Common Stock(24800*$8)		$               1,98,400.00
	(Decalred 4% stock dividend on =(24800 shares @$18)
15-Aug	Stock dividend distributable	$       2,48,000.00
	To Common Stock		$               2,48,000.00
	(Issued the certificate on dividend declared on July 5th)
23-Nov	Treasury Stock(33000@$20)	$       6,60,000.00
	To Cash		$               6,60,000.00
	(Purchased 33000 treasury stock @$20)
28-Dec	Cash Dividend (520000+100000+24800-33000)*$.17	$       1,04,006.00
	To Cash Dividend Payable		$               1,04,006.00
	(Dividend declared on common stock)
31-Dec	Income Summary	$ 1,22,72,000.00
	To Retained Earnings		$         1,22,72,000.00
	(Income Summary account transferrd to retained earnings account)
31-Dec	Retained Earnings	$       5,50,406.00
	To Stock Dividend		$               4,46,400.00
	To Cash Dividend		$               1,04,006.00
	(Cash dividend and Stock dividend from retianed Earnings)
		Common Stock
Date	Particular	Debit	Date	Particular	Credit
31-Dec	Balance c/d	$     64,48,000.00	01-Jan	Balance	$       52,00,000.00
			10-Apr		$       10,00,000.00
			15-Aug		$         2,48,000.00
	Total	$     64,48,000.00		Total	$       64,48,000.00
		Stock dividend Distributable
Date	Particular	Debit	Date	Particular	Credit
15-Aug	To Common Stock	$       2,48,000.00	05-Jul		$         2,48,000.00
	Total	$       2,48,000.00		Total	$         2,48,000.00
		Paid in capital excess of par-Common Stock
Date	Particular	Debit	Date	Particular	Credit
31-Dec	To Balance C/d	$     17,98,400.00	01-Jan	Balance	$       10,00,000.00
			10-Apr		$         6,00,000.00
			05-Jul		$         1,98,400.00
	Total	$     17,98,400.00		Total	$       17,98,400.00
		Stock Dividend
Date	Particular	Debit	Date	Particular	Credit
05-Jul		$       4,46,400.00	31-Dec		$         4,46,400.00
	Total	$       4,46,400.00		Total	$         4,46,400.00
		Cash Dividend
Date	Particular	Debit	Date	Particular	Credit
28-Dec		$       1,04,006.00	31-Dec		$         1,04,006.00
	Total	$       1,04,006.00		Total	$         1,04,006.00
		Treasury Stock
Date	Particular	Debit	Date	Particular	Credit
01-Jan	Balance	$       7,80,000.00	06-Jun		$         7,80,000.00
23-Nov		$       6,60,000.00	31-Dec		$         6,60,000.00
	Total	$     14,40,000.00		Total	$       14,40,000.00
		Paid in Capital-sale of Treasury Stock
Date	Particular	Debit	Date	Particular	Credit
31-Dec	Balance C/d	$       1,56,000.00	06-Jun		$         1,56,000.00
	Total	$       1,56,000.00		Total	$         1,56,000.00
		Retained Earnings
Date	Particular	Debit	Date	Particular	Credit
			01-Jan	Balance	$   1,18,00,000.00
31-Dec	To Stock Dividend	$       5,50,406.00	31-Dec		$   1,22,72,000.00
31-Dec	Balance C/d	$ 2,35,21,594.00
	Total	$ 2,40,72,000.00		Total	$   2,40,72,000.00
	Morrow Enterprises Inc.
	Retained Earnings Statement
	For the Year Ended December 31st
	Beginning Balance	$ 1,18,00,000.00
	Add: Net Income	$ 1,22,72,000.00
	Less:
	Stock Dividend	$      -4,46,400.00
	Cash Dividend	$      -1,04,006.00
	Ending Balance	$ 2,35,21,594.00
	Morrow Enterprise Inc.
	Stockholder's Equity
	Paid in capital:
	Common Stock,$10 stated value (8,00,000 shares authorized ,644800 shares issued)	$     64,48,000.00
	Excess of issue price over stated value	$     17,98,400.00
	From sale of treasury stock	$       1,56,000.00
	Total Paid in Capital		$            84,02,400.00
	Retained Earnings		$         2,35,21,594.00
	Total		$         3,19,23,994.00
	Less: Treasury Stock(33000 shares)		$             -6,60,000.00
	Total Stockholder's Equity	$                          -	$         3,12,63,994.00