Question

Corporate Transactions Common stock / shares , Please help. I am not sure if if my answears are correct.

Answer 1

Credit Calculation Morrow Enterprises Date Account 22-Jan Dividends Payable Cash Debit 81,000 81,000 2,070,000 10-Apr Cash Common Stock Paid in Capital in Excess of Stated Value-Common Stock =115,000*10 1,150,000 920,000 1,020,000 =60,000*17 6-Jun Cash Treasury Stock Paid in Capital from Treasury Stock 840,000 180,000 715,000 5-Jul Stock Dividends Stock Dividends Distributable Paid in Capital in Excess of Stated Value-Common Stock =35,750*20 =35,750*10 357,500 357,500 357,500 15-Aug Stock Dividends Distributable Common Stock 357,500 722,000 =38,000*19 23-Nov Treasury Stock Cash 722,000 128,295 As per below wkgs 28-Dec Cash Dividends Dividends Payable 128,295 14,165,000 31-Dec Income Summary Retained Earnings 14,165,000 843,295 31-Dec Retained Earnings Stock Dividends Cash Dividends 715,000 128,295 Workings Cash Dividends Opening Shares Shares Issued Subtotal 5% Stock Dividends Number of Common Shares Issued Treasury Stock Number of Common Shares o/s Cash Dividend per share Cash Dividends =715,000*5% 600,000 115,000 715,000 35,750 750,750 (38,000) 712,750 0.18 128,295 =712,750*0.18

Credit Date Credit Morrow Enterprises T Accounts Date Debit Date Common Stock Op bal 10-Apr 15-Aug Date Debit Date Credit Paid in Capital in Excess of Stated Value-CS Op bal 1,150,000 10-Apr 920,000 5-Jul 357,500 Debit Date Credit Date Retained Earnings 715,000 Op bal 13,620,000 Op bal 128,295 31-Dec 14,165,000 23-Nov Debit Date Treasury Stock 840,000 6-Jun 722,000 6,000,000 1,150,000 357,500 840,000 31-Dec 31-Dec 26,941,705 Bal. Bal. 7,507,500 Paid in Capital from Treasury Stock 6-Jun 180,000 Bal. 2,427,500 Stock Dividends Distributable 15-Aug 357,500 5-Jul 357,500 Bal. Stock Dividends 715,000 31-Dec 722,000 Cash Dividends 128,295 31-Dec 5-Jul 715,000 28-Dec 128,295 Bal. 180,000 Bal. - Bal. . Bal.

13,620,000 Morrow Enterprises Statement of Retained Earnings For year ended Dec 31, 2016 Retained Earnings, Jan 1, 2016 Net income Cash Dividends Stock Dividends Changes in retained earnings Retained Earnings, Dec 31, 2016 14,165,000 (128,295) (715,000) 13,321,705 26,941,705 Morrow Enterprises Balance Sheet As of Dec 31, 2016 Stockholders Equity Paid in Capital Common Stock - $10 stated value (900,000 shares authorized, 750, 750 shares issued & 712,750 shares outstanding) Paid in Capital in Excess of Stated Value-Common Stock Paid in Capital from Treasury Stock Total Paid in Capital Retained Earnings Total Less: Treasury Stock (38,000 shares @ $19 per share) Total Stockholders Equity 7,507,500 2,427,500 180,000 10,115,000 26,941,705 37,056,705 (722,000) 36,334,705