please answer the whole question and dont cut off answers    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, $20 stated value (500,000 shares authorized, 399,000 shares issued) $7,980,000 Paid-In Capital in Excess of Stated Value—Common Stock 877,800 Retained Earnings 34,554,000 Treasury Stock (22,500 shares, at a cost of $17 per share) 382,500 The following selected transactions occurred during the year:   Jan. 22 Paid cash dividends of $0.07 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $26,355. Apr. 10 Issued 73,000 shares of common stock for $23 per share. Jun. 6 Sold all of the treasury stock for $26 per share. Jul. 5 Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $24 per share. Aug. 15 Issued the certificates for the dividend declared on July 5. Nov. 23 Purchased 30,000 shares of treasury stock for $20 per share. Dec. 28 Declared a $0.09-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. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar. c. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,162,500. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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please answer the whole question and dont cut off answers 

 

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, $20 stated value (500,000 shares authorized, 399,000 shares issued)

$7,980,000

Paid-In Capital in Excess of Stated Value—Common Stock

877,800

Retained Earnings

34,554,000

Treasury Stock (22,500 shares, at a cost of $17 per share)

382,500

The following selected transactions occurred during the year:

 

Jan.

22

Paid cash dividends of $0.07 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $26,355.

Apr.

10

Issued 73,000 shares of common stock for $23 per share.

Jun.

6

Sold all of the treasury stock for $26 per share.

Jul.

5

Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $24 per share.

Aug.

15

Issued the certificates for the dividend declared on July 5.

Nov.

23

Purchased 30,000 shares of treasury stock for $20 per share.

Dec.

28

Declared a $0.09-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. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends.

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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar.

c.

Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,162,500. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount.

d.

Prepare the Stockholders’ Equity section of the December 31, 20Y5, balance sheet. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. For those boxes in which you must enter subtractive or negative numbers, use a minus sign.

CHART OF ACCOUNTS

 

Morrow Enterprises Inc.

 

General Ledger

 

 

 

 

ASSETS

110

Cash

120

Accounts Receivable

131

Notes Receivable

132

Interest Receivable

141

Merchandise Inventory

145

Office Supplies

151

Prepaid Insurance

181

Land

193

Equipment

194

Accumulated Depreciation-Equipment

 

LIABILITIES

210

Accounts Payable

221

Notes Payable

226

Interest Payable

231

Cash Dividends Payable

236

Stock Dividends Distributable

241

Salaries Payable

261

Mortgage Note Payable

 

EQUITY

311

Common Stock

313

Paid-In Capital in Excess of Stated Value-Common Stock

315

Treasury Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

 

REVENUE

410

Sales

610

Interest Revenue

 

EXPENSES

510

Cost of Merchandise Sold

515

Credit Card Expense

520

Salaries Expense

531

Advertising Expense

532

Delivery Expense

533

Selling Expenses

534

Rent Expense

535

Insurance Expense

536

Office Supplies Expense

537

Organizational Expenses

562

Depreciation Expense-Equipment

590

Miscellaneous Expense

710

Interest Expense

Labels

 

For the Year Ended December 31, 20Y5

 

December 31, 20Y5

 

Amount Descriptions

 

Cash balance, July 31, 20Y5

 

Cash dividends

 

Common stock, $20 stated value (500,000 shares authorized, 399,000 shares issued)

 

Common stock, $20 stated value (500,000 shares authorized, 451,440 shares issued)

 

Common stock, $20 stated value (500,000 shares authorized, 481,440 shares issued)

 

Decrease in retained earnings

 

Excess over stated value

 

From sale of treasury stock

 

Increase in retained earnings

 

Net income

 

Net loss

 

Paid-in capital, common stock

 

Retained earnings

 

Retained earnings, December 31, 20Y5

 

Retained earnings, January 1, 20Y5

 

Stock dividends

 

Total

 

Total paid-in capital

 

Total stockholders’ equity

 

Treasury stock

 

T Accounts
a. Enter the January 1 balances in Taccounts 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. No post ref is required in the journal.
Common Stock
Paid-In Capital In Excess of Stated Value-Common Stock
Retained Earnings
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Stock Dividends Distributable
Stock Dividends
Cash Dividends
b. Journalize the entries to record the transactions. No post ref is required in the journal. Refer to the chart of accounts for the exact wording of the
account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will
automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
DEBIT
CREDIT
ASSETS LIABILITIESQUITY
3
4
5.
9
10
11
12
13
14
15
16
17
18
19
20
Transcribed Image Text:T Accounts a. Enter the January 1 balances in Taccounts 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. No post ref is required in the journal. Common Stock Paid-In Capital In Excess of Stated Value-Common Stock Retained Earnings Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends b. Journalize the entries to record the transactions. No post ref is required in the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION DEBIT CREDIT ASSETS LIABILITIESQUITY 3 4 5. 9 10 11 12 13 14 15 16 17 18 19 20
a c. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended
al December 31, 20Y5, of $1,162,500. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount
Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount.
Morrow Enterprises
Retained Eamings Statement
(Label)
1
2
3 Dividends:
4.
Ed. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Refer to the chart of accounts and the lists of Labels and Amount
E Descriptions for the exact wording of text entries. For those boxes in which you must enter subtractive or negative numbers, use a minus sign.
Stockholders' Equity
1 Paid-in capital:
7.
123 4S 679
Transcribed Image Text:a c. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended al December 31, 20Y5, of $1,162,500. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount. Morrow Enterprises Retained Eamings Statement (Label) 1 2 3 Dividends: 4. Ed. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Refer to the chart of accounts and the lists of Labels and Amount E Descriptions for the exact wording of text entries. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. Stockholders' Equity 1 Paid-in capital: 7. 123 4S 679
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