Homework Help is Here – Start Your Trial Now!
Business
Accounting
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2015, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at a cost of $18 per share) The following selected transactions occurred during the year: $ 7,500,000 825,000 33,600,000 450,000 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 Jun. 6 Jul. 5 Issued 75,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued the certificates for the dividend declared on July 5. Aug. 15 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 two dividends accounts to Retained Earnings. Required: A. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. B. Journalize the entries to record the transactions and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a retained earnings statement for the year ended December 31, 2015. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. The word "Less" is not required.*

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2015, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at a cost of $18 per share) The following selected transactions occurred during the year: $ 7,500,000 825,000 33,600,000 450,000 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 Jun. 6 Jul. 5 Issued 75,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued the certificates for the dividend declared on July 5. Aug. 15 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 two dividends accounts to Retained Earnings. Required: A. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. B. Journalize the entries to record the transactions and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a retained earnings statement for the year ended December 31, 2015. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. The word "Less" is not required.*

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...
See similar textbooks
icon
Related questions
Question
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2015, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at a cost of $18 per share) The following selected transactions occurred during the year: $ 7,500,000 825,000 33,600,000 450,000 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 Jun. 6 Jul. 5 Issued 75,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued the certificates for the dividend declared on July 5. Aug. 15 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 two dividends accounts to Retained Earnings. Required: A. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. B. Journalize the entries to record the transactions and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a retained earnings statement for the year ended December 31, 2015. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. The word "Less" is not required.*
Transcribed Image Text:Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2015, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at a cost of $18 per share) The following selected transactions occurred during the year: $ 7,500,000 825,000 33,600,000 450,000 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 Jun. 6 Jul. 5 Issued 75,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Issued the certificates for the dividend declared on July 5. Aug. 15 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 two dividends accounts to Retained Earnings. Required: A. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. B. Journalize the entries to record the transactions and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a retained earnings statement for the year ended December 31, 2015. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. The word "Less" is not required.*
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS