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: Common Stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) $4,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 750,000 Retained Earnings 9,080,000 Treasury Stock (40,000 shares, at a cost of $14 per share) 560,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Apr. 10. Issued 75,000 shares of common stock for $18 per share. June 6. Sold all of the treasury stock for $680,000. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 25,000 shares of treasury stock for $475,000. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. Common Stock Jan. 1 Bal. 4,000,000 fill in the blank 2 fill in the blank 4 Dec. 31 Bal. fill in the blank 5 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 750,000 fill in the blank 7 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings fill in the blank 12 Jan. 1 Bal. 9,080,000 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 560,000 fill in the blank 17 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock fill in the blank 22 Stock Dividends Distributable fill in the blank 24 fill in the blank 26 Stock Dividends fill in the blank 28 fill in the blank 30 Cash Dividends fill in the blank 32 fill in the blank 34 2. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Date Account Debit Credit Jan. 22 fill in the blank 36 fill in the blank 37 fill in the blank 39 fill in the blank 40 Apr. 10. Issued 75,000 shares of common stock for $18. Date Account Debit Credit Apr. 10 fill in the blank 42 fill in the blank 43 fill in the blank 45 fill in the blank 46 fill in the blank 48 fill in the blank 49 June 6. Sold all of the treasury stock for $680,000. Date Account Debit Credit June 6 fill in the blank 51 fill in the blank 52 fill in the blank 54 fill in the blank 55 fill in the blank 57 fill in the blank 58 July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Date Account Debit Credit July 5 fill in the blank 60 fill in the blank 61 fill in the blank 63 fill in the blank 64 fill in the blank 66 fill in the blank 67 Aug. 15. Issued the certificates for the dividend declared on July 5. Date Account Debit Credit Aug. 15 fill in the blank 69 fill in the blank 70 fill in the blank 72 fill in the blank 73 Nov. 23. Purchased 25,000 shares of treasury stock for $475,000. Date Account Debit Credit Nov. 23 fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 Dec. 28. Declared a $0.15-per-share dividend on common stock. Date Account Debit Credit Dec. 28 fill in the blank 81 fill in the blank 82 fill in the blank 84 fill in the blank 85 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $9,443,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 $fill in the blank 96 $fill in the blank 98 Dividends: fill in the blank 100 fill in the blank 102 fill in the blank 104 $fill in the blank 106 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5 Paid-In-Capital: $fill in the blank 108 fill in the blank 110 $fill in the blank 112 fill in the blank 114 Total Paid-In Capital $fill in the blank 115 fill in the blank 117 fill in the blank 119 Total Stockholders' Equity $fill in the blank 120
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: Common Stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) $4,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 750,000 Retained Earnings 9,080,000 Treasury Stock (40,000 shares, at a cost of $14 per share) 560,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Apr. 10. Issued 75,000 shares of common stock for $18 per share. June 6. Sold all of the treasury stock for $680,000. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 25,000 shares of treasury stock for $475,000. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. Common Stock Jan. 1 Bal. 4,000,000 fill in the blank 2 fill in the blank 4 Dec. 31 Bal. fill in the blank 5 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 750,000 fill in the blank 7 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings fill in the blank 12 Jan. 1 Bal. 9,080,000 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 560,000 fill in the blank 17 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock fill in the blank 22 Stock Dividends Distributable fill in the blank 24 fill in the blank 26 Stock Dividends fill in the blank 28 fill in the blank 30 Cash Dividends fill in the blank 32 fill in the blank 34 2. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Date Account Debit Credit Jan. 22 fill in the blank 36 fill in the blank 37 fill in the blank 39 fill in the blank 40 Apr. 10. Issued 75,000 shares of common stock for $18. Date Account Debit Credit Apr. 10 fill in the blank 42 fill in the blank 43 fill in the blank 45 fill in the blank 46 fill in the blank 48 fill in the blank 49 June 6. Sold all of the treasury stock for $680,000. Date Account Debit Credit June 6 fill in the blank 51 fill in the blank 52 fill in the blank 54 fill in the blank 55 fill in the blank 57 fill in the blank 58 July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Date Account Debit Credit July 5 fill in the blank 60 fill in the blank 61 fill in the blank 63 fill in the blank 64 fill in the blank 66 fill in the blank 67 Aug. 15. Issued the certificates for the dividend declared on July 5. Date Account Debit Credit Aug. 15 fill in the blank 69 fill in the blank 70 fill in the blank 72 fill in the blank 73 Nov. 23. Purchased 25,000 shares of treasury stock for $475,000. Date Account Debit Credit Nov. 23 fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 Dec. 28. Declared a $0.15-per-share dividend on common stock. Date Account Debit Credit Dec. 28 fill in the blank 81 fill in the blank 82 fill in the blank 84 fill in the blank 85 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $9,443,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 $fill in the blank 96 $fill in the blank 98 Dividends: fill in the blank 100 fill in the blank 102 fill in the blank 104 $fill in the blank 106 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5 Paid-In-Capital: $fill in the blank 108 fill in the blank 110 $fill in the blank 112 fill in the blank 114 Total Paid-In Capital $fill in the blank 115 fill in the blank 117 fill in the blank 119 Total Stockholders' Equity $fill in the blank 120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Entries for Selected Corporate Transactions
Morrow Enterprises Inc. manufactures bathroom fixtures. The
| Common Stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) | $4,000,000 |
| Paid-In Capital in Excess of Stated Value-Common Stock | 750,000 |
| 9,080,000 | |
| 560,000 |
The following selected transactions occurred during the year:
| Jan. 22. | Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. |
| Apr. 10. | Issued 75,000 shares of common stock for $18 per share. |
| June 6. | Sold all of the treasury stock for $680,000. |
| July 5. | Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. |
| Aug. 15. | Issued the certificates for the dividend declared on July 5. |
| Nov. 23. | Purchased 25,000 shares of treasury stock for $475,000. |
| Dec. 28. | Declared a $0.15-per-share dividend on common stock. |
| 31. | Closed the two dividends accounts to Retained Earnings. |
Required:
1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate.
| Common Stock | |||
|---|---|---|---|
| Jan. 1 Bal. | 4,000,000 | ||
|
|
fill in the blank 2 | ||
|
|
fill in the blank 4 | ||
| Dec. 31 Bal. | fill in the blank 5 |
| Paid-In Capital in Excess of Stated Value-Common Stock | |||
|---|---|---|---|
| Jan. 1 Bal. | 750,000 | ||
|
|
fill in the blank 7 | ||
|
|
fill in the blank 9 | ||
| Dec. 31 Bal. | fill in the blank 10 |
| Retained Earnings | |||
|---|---|---|---|
|
|
fill in the blank 12 | Jan. 1 Bal. | 9,080,000 |
|
|
fill in the blank 14 | ||
| Dec. 31 Bal. | fill in the blank 15 |
| Treasury Stock | |||
|---|---|---|---|
| Jan. 1 Bal. | 560,000 |
|
fill in the blank 17 |
|
|
fill in the blank 19 | ||
| Dec. 31 Bal. | fill in the blank 20 |
| Paid-In Capital from Sale of Treasury Stock | |||
|---|---|---|---|
|
|
fill in the blank 22 |
| Stock Dividends Distributable | |||
|---|---|---|---|
|
|
fill in the blank 24 |
|
fill in the blank 26 |
| Stock Dividends | |||
|---|---|---|---|
|
|
fill in the blank 28 |
|
fill in the blank 30 |
| Cash Dividends | |||
|---|---|---|---|
|
|
fill in the blank 32 |
|
fill in the blank 34 |
2.
Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Jan. 22 |
|
fill in the blank 36 | fill in the blank 37 |
|
|
fill in the blank 39 | fill in the blank 40 |
Apr. 10. Issued 75,000 shares of common stock for $18.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 10 |
|
fill in the blank 42 | fill in the blank 43 |
|
|
fill in the blank 45 | fill in the blank 46 | |
|
|
fill in the blank 48 | fill in the blank 49 |
June 6. Sold all of the treasury stock for $680,000.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 6 |
|
fill in the blank 51 | fill in the blank 52 |
|
|
fill in the blank 54 | fill in the blank 55 | |
|
|
fill in the blank 57 | fill in the blank 58 |
July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5 |
|
fill in the blank 60 | fill in the blank 61 |
|
|
fill in the blank 63 | fill in the blank 64 | |
|
|
fill in the blank 66 | fill in the blank 67 |
Aug. 15. Issued the certificates for the dividend declared on July 5.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 15 |
|
fill in the blank 69 | fill in the blank 70 |
|
|
fill in the blank 72 | fill in the blank 73 |
Nov. 23. Purchased 25,000 shares of treasury stock for $475,000.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Nov. 23 |
|
fill in the blank 75 | fill in the blank 76 |
|
|
fill in the blank 78 | fill in the blank 79 |
Dec. 28. Declared a $0.15-per-share dividend on common stock.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 28 |
|
fill in the blank 81 | fill in the blank 82 |
|
|
fill in the blank 84 | fill in the blank 85 |
Dec. 31. Closed the two dividends accounts to Retained Earnings.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 31 |
|
fill in the blank 87 | fill in the blank 88 |
|
|
fill in the blank 90 | fill in the blank 91 | |
|
|
fill in the blank 93 | fill in the blank 94 |
3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $9,443,000.
| Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 |
||
|
|
$fill in the blank 96 | |
|
|
$fill in the blank 98 | |
| Dividends: | ||
|
|
fill in the blank 100 | |
|
|
fill in the blank 102 | |
|
|
fill in the blank 104 | |
|
|
$fill in the blank 106 |
4. Prepare the Stockholders' Equity section of the December 31, 20Y5,
| Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5 |
|||
| Paid-In-Capital: | |||
|
|
$fill in the blank 108 | ||
|
|
fill in the blank 110 | ||
|
|
$fill in the blank 112 | ||
|
|
fill in the blank 114 | ||
| Total Paid-In Capital | $fill in the blank 115 | ||
|
|
fill in the blank 117 | ||
|
|
fill in the blank 119 | ||
| Total Stockholders' Equity | $fill in the blank 120 |
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