Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances

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Morrow Enterprises Inc Manufactures Bathroom Fixtures Morrow Enterprises Stockholders Equity Accounts With Balances 1 (28.91 KiB) Viewed 31 times

Morrow Enterprises Inc Manufactures Bathroom Fixtures Morrow Enterprises Stockholders Equity Accounts With Balances 2 (37.96 KiB) Viewed 31 times

Morrow Enterprises Inc Manufactures Bathroom Fixtures Morrow Enterprises Stockholders Equity Accounts With Balances 3 (28.57 KiB) Viewed 31 times

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at cost) The following selected transactions occurred during the year: Jan. Apr. Jun Jul. Aug Nov. 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 $28,000. Issued 75,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 4% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued shares of stock for the Stock dividend declared on July 5. Purchased 30,000 shares of treasury stock for $19 por share. 10 6 5 $7,500,000 825,000 33,600,000 450,000 15 23

Dec. 28 Declared a $0.10-per-share dividend on common stock. Closed the two dividends accounts to Retained Earnings. 31 Required: 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of $1,125,000 to the retained earnings account. Refer to the Chart of Accounts for exact wording of account titles. 3. Prepare a Prepare a statement of stockholders' equity for the year ended December 31, 20Y6. Assume that net income was $1,125,000 for the year ended December 31, 2016. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter "0". I 4. Prepare the "Stockholders' Equity" section of the December 31, 20Y6, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign." *Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

lance me pald hd nd retained earnings ance Morrow Enterprises Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y6 Paid-In Capital in Excess of Stated Value $33,600,000.00 $33,600,000.00 1,125,000.00 1,125,000.00 Common Stock 450,000.00 43,800.00 450,000.00 43,800.00 Paid-In Capital from Sale of Treasury Stock Retained Earnings 450,000.00 43,800.00 $33,600,000.00 1,125,000.00 1,125,000.00 Treasury Stock $336,000,000.00 $336,000,000.00 $336,000,000.00 1,125,000.00 1,125,000.00 450,000.00 43,800.00 6,312,000.00 Total 450,000.00 43,800.00 450,000.00 43,800.00 34,231,200.00 $34,231,200.00