Question

please help, these are in order

Morrow Enterprises Inc. manufactures bathroom fotures. Morrow Enterprises' stockholders equity accounts, with balances on January 1, 20Y6, are as follows Common stock, $20 stated value (500,000 shares authorized, 399,000 shares issued) $7,980,000 Paid-In Capital in Excess of Stated Value-Common Stock 877,800 Retained Earnings 34,554,000 Treasury Stock (22,500 shares, at cost) 382,500 The following selected transactions occurred during the year The dividend had been properly Paid cash dividends of $0.07 per share on the common stock Jan 22 recorded when declared on December 1 of the preceding fiscal year for $26,355 Issued 73,000 shares of common stock for $23 per share. Аpг 10 Sold all of the treasury stock for $26 per share. Jun 6 Declared a 2% Stock dividend on common stock, to be capitalized at the market price of the stock Jul which is $24 per share. Issued the certificates for the dividend declared on July 5. 15 Aug Purchased 30,000 shares of treasury stock for $20 per share. 23 Nov Declared a $0.09-per-share dividend on common stock 28 Dec Closed the two dividends accounts to Retained Earnings 31

Answer 1

(Amounts in $) JOURNAL ENTRIES Jan.22 Dividends payable (399000-22500) *0.07] Cash (Payment of cash dividends) 26,355 26,355 T-ACCOUNTS Stock dividends Jul.5 1,80,720 Dec.31 Balance 1,80,720 Jan.23 16,79,000 Cash (73000*23) Common stock (73000*20) Paid-in capital in excess of stated value-Common stock (73000*3) (Purchase of shares as treasury stock) 14,60,000 2,19,000 33,885 Cash dividends Jul.5 Dec.31 Balance 33,885 Jun.6 5,85,000 Cash (22500*26) Treasury stock (22500*17) Paid in capital from sale of treasury stock (Sale of one-half of treasury shares acquired on January 23) 3,82,500 2,02,500 1,50,600 Stock dividends distributable Jul.5 Aug. 15 1,50,600 Balance Jul.5 1,80,720 Stock dividends [(399000-22500)*2%*24] Stock dividends distributable (376500*2%*20) Paid-in capital in excess of stated value-Common stock (Declaration of stock dividend) 1,50,600 30,120 Common stock Beginning Jan.23 Aug. 15 Balance 79,80,000 14,60,000 1,50,600 95,90,600 Aug.15 1,50,600 Stock dividends distributable Common stock (Issuance of certificates for stock dividend) 1,50,600

Nov.23 6,00,000 Treasury stock (30000*20) Cash (Purchase of 30000 shares of treasury stock) 6,00,000 Paid in capital in excess of stated value-Common stock Beginning 8,77,800 Jan.23 2,19,000 Jul.5 30,120 Balance 11,26,920 Dec.28 33,885 Cash dividends (376500*0.09) Dividends payable (Declaration of dividend on common stock) 33,885 3,82,500 Treasury stock Jan.23 Jun.6 Nov.23 Balance 3,82,500 Dec.31 11,62,500 Net income Retained earnings (Transfer of net income to retained earnings account) 6,00,000 6,00,000 11,62,500 Dec.31 2,14,605 Retained earnings Cash dividends Stock dividends Paid in capital from sale of treasury stock Jun.6 2,02,500 Balance 2,02,500 33,885 1,80,720 Retained earnings Beginning Dec.31 Dec.31 2,14,605 Balance 3,45,54,000 11,62,500 3,55,01,895

Statement of stockholders' equity Paid in capital from sale of Common stock Paid in capital in excess of stated value-Common stock treasury stock Retained earnings Treasury stock 95,90,600 11,26,920 2,02,500 3,55,01,895 6,00,000 95,90,600 Balance sheet Stockholders' equity Common stock, $20 stated value(500000 shares authorized,479530 shares issued Paid in capital in excess of stated value-Common stock Retained earnings Treasury stock (30000 shares, at cost) Paid in capital from sale of treasury stock 11,26,920 3,55,01,895 6,00,000 2,02,500 4,70,21,915