50.1K

Verified Solution

Link Copied!

Entries for Selected Corporate Transactions Morrow Enterprises Inc, manufactures bathroom Pictures, Morrow Enterprises ockholders' equity accounts, with balances on January 1, 2016, are as follows: Common Stock. $10 stated value (300.000 shares authorized. 200.000 shares sued) $2,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 400,000 Retained Earnings 4.540,000 Treasury Stock (20,000 shares, at cost) 280.000 The following selected transactions occurred during the year Jan. 22. Pald cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $21,600. Apa 10. Issued 40,000 shares of common stock for $720,000. June 6. Sold all of the treasury stock for $17 per share. July 3. 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. 22. Purchased 13.000 shares of treasury stock for $19 per share. Dec. 28. Declared a $0.15-per-share dividend on common stock 21. Closed the credit balance of the income summary account. 54,722.000 31. Closed the two dividends accounts to Retained Earnings Required: 1. The January 1 balances have been entered in accounts for the stockholders' culty accounts Record the above transactions in the Tacones and provide the December 31 hesap one decimal place 2.000.000 4 DU 00 Common Stock Dan 1 bal. [Apr. 10 Aug. 15 Dec 11 Bal >XX 400,000 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. Apr. 10 July 5 Dec. 31 Bal. Dec. 31 Retained Earnings Jan. 1 Bal. Dec. 31 4,540,000 Dec. 31 Bal. Jan. 1 Bal. Nov. 23 Treasury Stock 280,000 June 6 Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock June 6 Stock Dividends Distributable July 5 Aug. 15 Stock Dividends July 5 Dec. 31 Check My Work Cash Dividends Dec. 28 Dec. 31 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 $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal Account Debit Credit Jan. 22 Apr. 10. Issued 40,000 shares of common stock for $720,000. Date Account Debit Credit Apa 10 June 6. Sold all of the treasury stock for $17 per share Account Debit Credit Date June 6 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. Account Debit July 5 Aug. 15. Issued shares of stock for the dividend dedared on July 5. Date Account Debit Credit Aug. 15

Answer & Explanation Solved by verified expert

See Answer