Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, $10 stated value (850,000 shares authorized, 580,000 shares issued) $5,800,000 Paid-In Capital in Excess of Stated Value-Common Stock 1,100,000 Retained Earnings 13,170,000 Treasury Stock (58,000 shares, at cost) 870,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. Apr. 10. Issued 110,000 shares of common stock for $1,980,000. June 6. Sold all of the treasury stock for $18 per share. 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 shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 36,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.18-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $13,697,000. 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. If required, round to one decimal place. Common Stock Jan. 1 Bal. 5,800,000 Apr. 10 fill in the blank 2 Aug. 15 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. 1,100,000 Apr. 10 fill in the blank 7 July 5 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings Dec. 31 fill in the blank 12 Jan. 1 Bal. 13,170,000 Nov. 23 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 870,000 June 6 fill in the blank 17 Nov. 23 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock June 6 fill in the blank 22 Stock Dividends Distributable Aug. 15 fill in the blank 24 July 5 fill in the blank 26 Stock Dividends July 5 fill in the blank 28 Dec. 31 fill in the blank 30 Cash Dividends Dec. 28 fill in the blank 32 Dec. 31 fill in the blank 34 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. Date Account Debit Credit Jan. 22 fill in the blank 36 fill in the blank 38 Apr. 10. Issued 110,000 shares of common stock for $1,980,000. Date Account Debit Credit Apr. 10 fill in the blank 40 fill in the blank 41 fill in the blank 43 fill in the blank 44 fill in the blank 46 fill in the blank 47 June 6. Sold all of the treasury stock for $18 per share. Date Account Debit Credit June 6 fill in the blank 49 fill in the blank 50 fill in the blank 52 fill in the blank 53 fill in the blank 55 fill in the blank 56 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 58 fill in the blank 59 fill in the blank 61 fill in the blank 62 fill in the blank 64 fill in the blank 65 Aug. 15. Issued shares of stock for the dividend declared on July 5. Date Account Debit Credit Aug. 15 fill in the blank 67 fill in the blank 69 Nov. 23. Purchased 36,000 shares of treasury stock for $20 per share. Date Account Debit Credit Nov. 23 fill in the blank 71 fill in the blank 73 Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Account Debit Credit Dec. 28 fill in the blank 75 fill in the blank 77 Dec. 31. Closed the credit balance of the income summary account, $13,697,000. Date Account Debit Credit Dec. 31 fill in the blank 79 fill in the blank 81 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 83 fill in the blank 84 fill in the blank 86 fill in the blank 87 fill in the blank 89 fill in the blank 90 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y6 fill in the blank 92 fill in the blank 94 fill in the blank 96 fill in the blank 98 fill in the blank 100 fill in the blank 102 4. Prepare the Stockholders' Equity section of the December 31, 20Y6, balance sheet. Morrow Enterprises Inc. Balance Sheet December 31, 20Y6 Stockholders' Equity Paid-In-Capital: fill in the blank 104 fill in the blank 106 fill in the blank 108 Total Paid-In Capital fill in the blank 109 fill in the blank 111 Total fill in the blank 112 fill in the blank 114 Total Stockholders' Equity fill in the blank 115
Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, $10 stated value (850,000 shares authorized, 580,000 shares issued) $5,800,000 Paid-In Capital in Excess of Stated Value-Common Stock 1,100,000 Retained Earnings 13,170,000 Treasury Stock (58,000 shares, at cost) 870,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. Apr. 10. Issued 110,000 shares of common stock for $1,980,000. June 6. Sold all of the treasury stock for $18 per share. 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 shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 36,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.18-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $13,697,000. 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. If required, round to one decimal place. Common Stock Jan. 1 Bal. 5,800,000 Apr. 10 fill in the blank 2 Aug. 15 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. 1,100,000 Apr. 10 fill in the blank 7 July 5 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings Dec. 31 fill in the blank 12 Jan. 1 Bal. 13,170,000 Nov. 23 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 870,000 June 6 fill in the blank 17 Nov. 23 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock June 6 fill in the blank 22 Stock Dividends Distributable Aug. 15 fill in the blank 24 July 5 fill in the blank 26 Stock Dividends July 5 fill in the blank 28 Dec. 31 fill in the blank 30 Cash Dividends Dec. 28 fill in the blank 32 Dec. 31 fill in the blank 34 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. Date Account Debit Credit Jan. 22 fill in the blank 36 fill in the blank 38 Apr. 10. Issued 110,000 shares of common stock for $1,980,000. Date Account Debit Credit Apr. 10 fill in the blank 40 fill in the blank 41 fill in the blank 43 fill in the blank 44 fill in the blank 46 fill in the blank 47 June 6. Sold all of the treasury stock for $18 per share. Date Account Debit Credit June 6 fill in the blank 49 fill in the blank 50 fill in the blank 52 fill in the blank 53 fill in the blank 55 fill in the blank 56 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 58 fill in the blank 59 fill in the blank 61 fill in the blank 62 fill in the blank 64 fill in the blank 65 Aug. 15. Issued shares of stock for the dividend declared on July 5. Date Account Debit Credit Aug. 15 fill in the blank 67 fill in the blank 69 Nov. 23. Purchased 36,000 shares of treasury stock for $20 per share. Date Account Debit Credit Nov. 23 fill in the blank 71 fill in the blank 73 Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Account Debit Credit Dec. 28 fill in the blank 75 fill in the blank 77 Dec. 31. Closed the credit balance of the income summary account, $13,697,000. Date Account Debit Credit Dec. 31 fill in the blank 79 fill in the blank 81 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 83 fill in the blank 84 fill in the blank 86 fill in the blank 87 fill in the blank 89 fill in the blank 90 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y6 fill in the blank 92 fill in the blank 94 fill in the blank 96 fill in the blank 98 fill in the blank 100 fill in the blank 102 4. Prepare the Stockholders' Equity section of the December 31, 20Y6, balance sheet. Morrow Enterprises Inc. Balance Sheet December 31, 20Y6 Stockholders' Equity Paid-In-Capital: fill in the blank 104 fill in the blank 106 fill in the blank 108 Total Paid-In Capital fill in the blank 109 fill in the blank 111 Total fill in the blank 112 fill in the blank 114 Total Stockholders' Equity fill in the blank 115
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’
| Common Stock, $10 stated value (850,000 shares authorized, 580,000 shares issued) | $5,800,000 |
| Paid-In Capital in Excess of Stated Value-Common Stock | 1,100,000 |
| Retained Earnings | 13,170,000 |
| 870,000 |
The following selected transactions occurred during the year:
| Jan. 22. | Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. |
| Apr. 10. | Issued 110,000 shares of common stock for $1,980,000. |
| June 6. | Sold all of the treasury stock for $18 per share. |
| 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 shares of stock for the stock dividend declared on July 5. |
| Nov. 23. | Purchased 36,000 shares of treasury stock for $20 per share. |
| Dec. 28. | Declared a $0.18-per-share dividend on common stock. |
| 31. | Closed the credit balance of the income summary account, $13,697,000. |
| 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. If required, round to one decimal place.
| Common Stock | |||
|---|---|---|---|
| Jan. 1 Bal. | 5,800,000 | ||
| Apr. 10 | fill in the blank 2 | ||
| Aug. 15 | 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. | 1,100,000 | ||
| Apr. 10 | fill in the blank 7 | ||
| July 5 | fill in the blank 9 | ||
| Dec. 31 Bal. | fill in the blank 10 |
| Retained Earnings | |||
|---|---|---|---|
| Dec. 31 | fill in the blank 12 | Jan. 1 Bal. | 13,170,000 |
| Nov. 23 | fill in the blank 14 | ||
| Dec. 31 Bal. | fill in the blank 15 |
| Treasury Stock | |||
|---|---|---|---|
| Jan. 1 Bal. | 870,000 | June 6 | fill in the blank 17 |
| Nov. 23 | fill in the blank 19 | ||
| Dec. 31 Bal. | fill in the blank 20 |
| Paid-In Capital from Sale of Treasury Stock | |||
|---|---|---|---|
| June 6 | fill in the blank 22 |
| Stock Dividends Distributable | |||
|---|---|---|---|
| Aug. 15 | fill in the blank 24 | July 5 | fill in the blank 26 |
| Stock Dividends | |||
|---|---|---|---|
| July 5 | fill in the blank 28 | Dec. 31 | fill in the blank 30 |
| Cash Dividends | |||
|---|---|---|---|
| Dec. 28 | fill in the blank 32 | Dec. 31 | fill in the blank 34 |
2.
Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Jan. 22 | fill in the blank 36 | ||
| fill in the blank 38 |
Apr. 10. Issued 110,000 shares of common stock for $1,980,000.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 10 | fill in the blank 40 | fill in the blank 41 | |
| fill in the blank 43 | fill in the blank 44 | ||
| fill in the blank 46 | fill in the blank 47 |
June 6. Sold all of the treasury stock for $18 per share.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 6 | fill in the blank 49 | fill in the blank 50 | |
| fill in the blank 52 | fill in the blank 53 | ||
| fill in the blank 55 | fill in the blank 56 |
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 58 | fill in the blank 59 | |
| fill in the blank 61 | fill in the blank 62 | ||
| fill in the blank 64 | fill in the blank 65 |
Aug. 15. Issued shares of stock for the dividend declared on July 5.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 15 | fill in the blank 67 | ||
| fill in the blank 69 |
Nov. 23. Purchased 36,000 shares of treasury stock for $20 per share.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Nov. 23 | fill in the blank 71 | ||
| fill in the blank 73 |
Dec. 28. Declared a $0.18-per-share dividend on common stock.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 28 | fill in the blank 75 | ||
| fill in the blank 77 |
Dec. 31. Closed the credit balance of the income summary account, $13,697,000.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 79 | ||
| fill in the blank 81 |
Dec. 31. Closed the two dividends accounts to Retained Earnings.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 31 | fill in the blank 83 | fill in the blank 84 | |
| fill in the blank 86 | fill in the blank 87 | ||
| fill in the blank 89 | fill in the blank 90 |
3. Prepare a retained earnings statement for the year ended December 31, 20Y6.
| Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y6 |
||
|---|---|---|
| fill in the blank 92 | ||
| fill in the blank 94 | ||
| fill in the blank 96 | ||
| fill in the blank 98 | ||
| fill in the blank 100 | ||
| fill in the blank 102 |
4. Prepare the Stockholders' Equity section of the December 31, 20Y6,
| Morrow Enterprises Inc. Balance Sheet December 31, 20Y6 |
||
|---|---|---|
| Stockholders' Equity | ||
| Paid-In-Capital: | ||
| fill in the blank 104 | ||
| fill in the blank 106 | ||
| fill in the blank 108 | ||
| Total Paid-In Capital | fill in the blank 109 | |
| fill in the blank 111 | ||
| Total | fill in the blank 112 | |
| fill in the blank 114 | ||
| Total Stockholders' Equity | fill in the blank 115 |
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