Morrow Enterprises Inc. – Stockholders Accounting

    Morrow Enterprises Inc. – Stockholders Accounting

    It is entries for selected corporate transactions. I have some of the questions answered already. 
    Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2014 are as follows;
    Common Stock $20 stated value (500,000 shares authorized, 375,000 shares issued)……$7,500,000
    Paid-in capital in excess of stated value (common stock)……………………………………….$825,000
    Retained earnings………………………………………………………………………………………………..$33,600,000
    Treasury stock (25,000 shares at cost)…………………………………………………………….$450,000
     

    The following selected transactions occurred during the year. 
    Jan 22. Paid cash dividends of $.08 per share on common stock. The dividend had been properly recorded when declared on Dec. 1 of the preceding fiscal year for $28,000.
    April 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.
    Aug 15. Issued the certificates for the dividend declared on July 5.
    Nov 23. Purchased 30,000 shares of treasury stock for $19 per share.
    Dec 28. Declared a $.10 per share dividend on common stock.
    Dec 31. Closed the credit balance of the income summary account, $1,125,000
    Dec 31. Closed the two dividend accounts to Retained Earnings

    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 31,2014.
    4. Prepare the Steockholders equity section of the December 31,2014 balance sheet. 

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