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Enter the January 1 balances in T Also prepare T accounts for the following: Paid-In Capital from Sale of Stock Dividends Distributable; Stock Dividends; Cash Dividends. Journalize the entries to record the transactions, and post to the eight selected acc Brenare a retained earnings statement for the year ended December 31, 2016. f the December 31, 2016, balance s

Enter the January 1 balances in T Also prepare T accounts for the following: Paid-In Capital from Sale of Stock Dividends Distributable; Stock Dividends; Cash Dividends. Journalize the entries to record the transactions, and post to the eight selected acc Brenare a retained earnings statement for the year ended December 31, 2016. f the December 31, 2016, balance s

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 12.4APR: Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures....
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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, 2016. Prenare the Stockholders’ Equity section of the December 31, 2016, balance sheet.
Transcribed Image Text: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, 2016. Prenare the Stockholders’ Equity section of the December 31, 2016, balance sheet.
PR 11-4A Entries for selected corporate transactions оBJ. 2, 3, 4, 5 Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity ae counts of Morrow Enterprises Inc., with balances on January 1, 2016, are as foimower E'equity, Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued). $ 7,500,000 825,000 Paid-In Capital in Excess of Stated Value-Common Stock. Retained Earnings .... Treasury Stock (25,000 shares, at cost) 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 mar- ket 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 $0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $1,125,000. 31. Closed the two dividends accounts to Retained Earnings.
Transcribed Image Text:PR 11-4A Entries for selected corporate transactions оBJ. 2, 3, 4, 5 Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity ae counts of Morrow Enterprises Inc., with balances on January 1, 2016, are as foimower E'equity, Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued). $ 7,500,000 825,000 Paid-In Capital in Excess of Stated Value-Common Stock. Retained Earnings .... Treasury Stock (25,000 shares, at cost) 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 mar- ket 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 $0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $1,125,000. 31. Closed the two dividends accounts to Retained Earnings.
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