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lashayl27
lashayl27
17.04.2020 • 
Business

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, $10 stated value (400,000 shares authorized, 260,000 shares issued) $2,600,000
Paid-In Capital in Excess of Stated Value-Common Stock 500,000
Retained Earnings 5,900,000
Treasury Stock (26,000 shares, at cost) 364,000

The following selected transactions occurred during the year:

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 year for $28,080.
Apr. 10. Issued 50,000 shares of common stock for $800,000.
June 6. Sold all of the treasury stock for $442,000.
July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
Aug. 15. Issued the certificates for the dividend declared on July 5.
Nov. 23. Purchased 16,000 shares of treasury stock for $304,000.
Dec. 28. Declared a $0.15-per-share dividend on common stock.
Dec. 31. Closed the credit balance of the income summary account, $6,136,000.
Dec. 31. Closed the two dividends accounts to Retained Earnings.

Requied:
The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate.

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