Instructions Journalize the entries to record the tråll ) Tetter The stockholder
ID: 2511407 • Letter: I
Question
Instructions Journalize the entries to record the tråll ) Tetter The stockholders' equity ae 08) 3,4.5 e stockhold Morrow Enterprises Inc., with balances on January 1, 20Y5, are Common Stock s20 stated value (500,000 shares authorized Paid-In Capital in Excess of Stated Value- Common Stock Treasury Stock(25,000 shares, at a cost of $18 per share) Entries fo equity ac PR 13-4A Morrow Enterprises of $1,500.00 825000 3 600.000 .45000 .. The following selected transactions occurred during the year: 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 preo 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 mar- ket price of the stock, which is $25 per share.Explanation / Answer
2. In the books of Morrow Enterprises Inc. :
3.Morrow Enterprises Inc.
Statement of Retained Earnings
For the year ended December 31, 20Y5
4. Morrow Enterprises Inc.
Balance Sheet ( Partial)
Date Account Titles Debit Credit $ $ Jan 22 Cash Dividends 28,000 Cash 28,000 April 10 Cash 1,800,000 Common Stock 1,500,000 Paid-in Capital in Excess of Stated Value: Common Stock 300,000 June 6 Cash 650,000 Treasury Stock 450,000 Paid-in Capital from the sale of Treasury Stock 200,000 July 5 Retained Earnings ( 450,000 x 4%) x $ 25 450,000 Stock Dividends Distributable ( 375,000 x 4%) x $ 20 360,000 Paid-in Capital in Excess of Stated Value: Common Stock 90,000 Aug 15 Stock Dividends Distributable 360,000 Common Stock 360,000 Nov 23 Treasury Stock 570,000 Cash 570,000 Dec 28 Retained Earnings ( 450,000 + 18,000 - 30,000) x $ 0.10 43,800 Cash Dividends 43,800