3.make a statement of stockholders’ equity for the year ended December 31, 20Y6. Assume that net income was $1,196,500 for the year ended December 31, 20Y6. 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". Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Morrow Enterprises Inc.Statement of Stockholders’ EquityFor the Year Ended December 31, 20Y61 Common StockPaid-In Capital in Excess of Stated ValuePaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTotal2 3 4 5 6 7 8 9 Amount Descriptions:Balances, January 1Balances, December 31Cash dividendsCommon stock, $20 stated value (500,000 shares authorized, 473,800 shares issued)Excess of issue price over stated valueFrom sale of treasury stockIssued common stockNet incomeNet lossPurchase of treasury stockSale of treasury stockStock dividendsRetained EarningsTotalTotal paid-in capitalTotal stockholders' equityTreasury stock (33,000 shares at cost) ASSETSCHART OF ACCOUNTSMorrow Enterprises Inc.110 Cash120 Accounts Receivable131 Notes Receivable132 Interest Receivable141 Inventory145 Office Supplies151 Prepaid Insurance181 Land193 Equipment194 Accumulated Depreciation-EquipmentLIABILITIES210 Accounts Payable221 Notes Payable226 Interest Payable231 Cash Dividends Payable241 Salaries Payable261 Mortgage Note PayableGeneral LedgerEQUITY236 Stock dividends Distributable311 Common Stock313 Paid-In Capital in Excess of Stated Value-Common Stock340 Retained Earnings351 Cash Dividends352 Stock dividends315 Treasury Stock321 Preferred Stock322 Paid-In Capital in Excess of Par-PreferredStock331 Paid-In Capital from Sale of TreasuryStockREVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Goods Sold515 Credit Card Expense520 Salaries Expense531 Advertising Expense532 Delivery Expense533 Selling Expenses534 Rent Expense535 Insurance Expense536 Office SuppliesExpense537 OrganizationalExpenses562 Depreciation Expense-Equipment590 Miscellaneous Expense710 Interest Expense InstructionsMorrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equityaccounts, with balances on January 1, 20Y6, are as follows:Common stock, $20 stated value (500,000 shares authorized,383,000 shares issued)Paid-In Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock (25,700 shares, at cost)The following selected transactions occurred during the year:Jan.Apr.Jun.Jul.Aug.Nov.Dec.22106$7,660,000Paid cash dividends of $0.06 per share on the common stock. Thedividend had been properly recorded when declared on December 1 ofthe preceding fiscal year for $21,438.Issued 77,000 shares of common stock for $23 per share.Sold all of the treasury stock for $27 per share.5 Declared a 3% Stock dividend on common stock, to be capitalized atthe market price of the stock, which is $26 per share.Issued the certificates for the dividend declared on July 5.23 Purchased 33,000 shares of treasury stock for $20 per share.28 Declared a $0.08-per-share dividend on common stock.31Closed the two dividends accounts to Retained Earnings.15957,50035,012,000462,600

The amount that a company's owners have put into their enterprise is known as shareholders' equity.…

make a statement of stockholders’ equity for the year ended December 31, 20Y6. Assume that net income was $1,196,500 for the year ended December 31, 20Y6. 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". Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Morrow Enterprises Inc. Statement of Stockholders’ Equity For the Year Ended December 31, 20Y6 1 Common Stock Paid-In Capital in Excess of Stated Value Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total 2 3 4 5 6 7 8 9 Amount Descriptions: Balances, January 1 Balances, December 31 Cash dividends Common stock, $20 stated value (500,000 shares authorized, 473,800 shares issued) Excess of issue price over stated value From sale of treasury stock Issued common stock Net income Net loss Purchase of treasury stock Sale of treasury stock Stock dividends Retained Earnings Total Total paid-in capital Total stockholders' equity Treasury stock (33,000 shares at cost)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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