Instructions Journalize the entries to record the transactions. Identify each entry by letter. PR 13-4A Entries for selected corporate transactions OBJ. 3, 4, 5, 6 Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity ac- ity, counts of Morrow Enterprises Inc., with balances on January 1, 2014, are as follows: 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... Retained Earnings 825,000 33,600,000 Treasury Stock (25,000 shares, at cost) 450,000 The following selected transactions occurred during the year: Jan. 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. 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. 5. Declared a 4% stock dividend on common stock, to be capitalized at the mar- ket price of the stock, which is $25 per share. July Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 30,000 shares of treasury stock for $19 per share. Dec. 28. Declared a $0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $1,125,000. 31. Closed the two dividends accounts to Retained Earnings. 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 transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 2014. 4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet. OBJ. 3, 4, 5, Entries for selected corporate transactions PR 13-5A Selected transactions completed by Primo Discount Corporation during the current fiscal 9. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding. 300 year are as follows: Jan. Feb. 28. Purchased 40,000 shares of the corporation's own common stock at $28, an 75 000 shares of preferred stock ble recording the stock at cost.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On instructions #1, the answers on a sample answer sheet show Jan 1st bal 7,500,000, Apr 10th 1,500,000, Aug 15th 360,000, and Dec 31st Bal 9,360,000. Can you explain how they calculated the 360,000 and where that figure came from? Thanks!

Instructions
Journalize the entries to record the transactions. Identify each entry by letter.
PR 13-4A
Entries for selected corporate transactions
OBJ. 3, 4, 5, 6
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity ac-
ity,
counts of Morrow Enterprises Inc., with balances on January 1, 2014, are as follows:
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...
Retained Earnings
825,000
33,600,000
Treasury Stock (25,000 shares, at cost)
450,000
The following selected transactions occurred during the year:
Jan. 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.
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.
5. Declared a 4% stock dividend on common stock, to be capitalized at the mar-
ket price of the stock, which is $25 per share.
July
Aug. 15. Issued the certificates for the dividend declared on July 5.
Nov. 23. Purchased 30,000 shares of treasury stock for $19 per share.
Dec. 28. Declared a $0.10-per-share dividend on common stock.
31. Closed the credit balance of the income summary account, $1,125,000.
31. Closed the two dividends accounts to Retained Earnings.
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 transactions, and post to the eight selected accounts.
3. Prepare a retained earnings statement for the year ended December 31, 2014.
4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet.
OBJ. 3, 4, 5,
Entries for selected corporate transactions
PR 13-5A
Selected transactions completed by Primo Discount Corporation during the current fiscal
9. Split the common stock 3 for 1 and reduced the par from $75 to $25 per
share. After the split, there were 1,200,000 common shares outstanding.
300
year are as follows:
Jan.
Feb. 28. Purchased 40,000 shares of the corporation's own common stock at $28,
an 75 000 shares of preferred stock
ble
recording the stock at cost.
Transcribed Image Text:Instructions Journalize the entries to record the transactions. Identify each entry by letter. PR 13-4A Entries for selected corporate transactions OBJ. 3, 4, 5, 6 Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity ac- ity, counts of Morrow Enterprises Inc., with balances on January 1, 2014, are as follows: 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... Retained Earnings 825,000 33,600,000 Treasury Stock (25,000 shares, at cost) 450,000 The following selected transactions occurred during the year: Jan. 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. 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. 5. Declared a 4% stock dividend on common stock, to be capitalized at the mar- ket price of the stock, which is $25 per share. July Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 30,000 shares of treasury stock for $19 per share. Dec. 28. Declared a $0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $1,125,000. 31. Closed the two dividends accounts to Retained Earnings. 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 transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 2014. 4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet. OBJ. 3, 4, 5, Entries for selected corporate transactions PR 13-5A Selected transactions completed by Primo Discount Corporation during the current fiscal 9. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding. 300 year are as follows: Jan. Feb. 28. Purchased 40,000 shares of the corporation's own common stock at $28, an 75 000 shares of preferred stock ble recording the stock at cost.
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