Entries for selected corporate transactionsMorrow Enterprises Inc. manufactures bathroom fixtures. The stockholders'equity accounts of Morrow Enterprises Inc., with balances on January 1,20Y5, are as follows: The following selected transactions occurred during the year: Instructions1. Enter the January 1 balances in T accounts for the stockholders'equity accounts listed. Also prepare T accounts for the following: Paidin Capital from Sale of Treasury Stock: Stock Dividends Distributable;Stock Dividends; Cash Dividends.2. Journalize the entries to record the totions and post to the eightselected accounts.S. Prepare a retained earnings statement for the year ended December1, 20Y5.4. Prepare the Stockholders' Equity section of the December $1, 20Y5,balance sheet using Method 1 of Exhibit 8. Common Stock, $20 stated value (500,000 sharesauthorized,375,000 shares issued)$7,500,000Paid-In Capital in Excess of Stated Value-Common Stock825,000Retained Earnings33,600,000Treasury Stock (25,000 shares, at a cost of SIS per share)| 450,000The following selected transactions occurred during the year:Paid cash dividends of $0.08 per share on the common stock.Jan. 22. The dividend had been properly recorded when declared onDecember 1 of the preceding fiscal year for $28,000.Apr. 10. Issued 75,000 .shares of common stock for $24 per share.June 6. Sold all of the treasury stock for $26 per share.Declared a 4% stock dividend on common stock, to beJuly 5. capitalized at the market price of the stock, which is $25 pershare.Aug.15. Issued the certificates for the dividend declared on July 5.Nov.Purchased 30,000 shares of treasury stock for $19 per share.23.Dec.Declared a $0.10-per-share dividend on common stock.28.31Closed the two dividends accounts to Retained Earnings.

(1). JOURNAL ENTRIES Date Account Titles and Explanation Debit ($) Credit ($) 20Y…

Answered: Common Stock, $20 stated value (500,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for selected corporate transactions
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders'
equity accounts of Morrow Enterprises Inc., with balances on January 1,
20Y5, are as follows:

The following selected transactions occurred during the year:

Instructions

1. Enter the January 1 balances in T accounts for the stockholders'
equity accounts listed. Also prepare T accounts for the following: Paid
in Capital from Sale of Treasury Stock: Stock Dividends Distributable;
Stock Dividends; Cash Dividends.

2. Journalize the entries to record the to
tions and post to the eight
selected accounts.
S. Prepare a retained earnings statement for the year ended December
1, 20Y5.
4. Prepare the Stockholders' Equity section of the December $1, 20Y5,
balance sheet using Method 1 of Exhibit 8.

Common Stock, $20 stated value (500,000 shares
authorized,375,000 shares issued)
$7,500,000
Paid-In Capital in Excess of Stated Value-Common Stock
825,000
Retained Earnings
33,600,000
Treasury Stock (25,000 shares, at a cost of SIS per share)
| 450,000
The following selected transactions occurred during the year:
Paid cash dividends of $0.08 per share on the common stock.
Jan. 22. The dividend had been properly recorded when declared on
December 1 of the preceding fiscal year for $28,000.
Apr. 10. Issued 75,000 .shares of common stock for $24 per share.
June 6. Sold all of the treasury stock for $26 per share.
Declared a 4% stock dividend on common stock, to be
July 5. capitalized at the market price of the stock, which is $25 per
share.
Aug.15. Issued the certificates for the dividend declared on July 5.
Nov.
Purchased 30,000 shares of treasury stock for $19 per share.
23.
Dec.
Declared a $0.10-per-share dividend on common stock.
28.
31
Closed the two dividends accounts to Retained Earnings.

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