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PR 13-4A Entries for selected corporate transactions 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, bns 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) OBJ.3,4,5,7 .... $7,500,000 825,000 33,600,000 450,000 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. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.

PR 13-4A Entries for selected corporate transactions 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, bns 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) OBJ.3,4,5,7 .... $7,500,000 825,000 33,600,000 450,000 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. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ckholders' -36,200 OBJ. 3,4,5,7 PR 13-4A Entries for selected corporate transactions 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, bas 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) noblor $ 7,500,000 825,000 33,600,000 450,000 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. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.
Transcribed Image Text:ckholders' -36,200 OBJ. 3,4,5,7 PR 13-4A Entries for selected corporate transactions 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, bas 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) noblor $ 7,500,000 825,000 33,600,000 450,000 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. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.
Chapter 13 Corporations: Organization, Stock Transactions, and Dividends Aug. 15. Nov. 23. Dec. 28. Issued the certificates for the dividend declared on July 5. Purchased 30,000 shares of treasury stock for $19 per share. Declared a $0.10-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. 671 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, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet using Method 1 of Exhibit 8.
Transcribed Image Text:Chapter 13 Corporations: Organization, Stock Transactions, and Dividends Aug. 15. Nov. 23. Dec. 28. Issued the certificates for the dividend declared on July 5. Purchased 30,000 shares of treasury stock for $19 per share. Declared a $0.10-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. 671 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, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,125,000. 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet using Method 1 of Exhibit 8.
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