Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows:Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued)$ 7,500,000Paid-In Capital in Excess of Stated Value—Common Stock825,000Retained Earnings33,600,000Treasury Stock (25,000 shares, at cost)450,000 The following selected transactions occurred during the year:Jan.22Paid 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.10Issued 75,000 shares of common stock for $24 per share.Jun.6Sold all of the treasury stock for $26 per share.Jul.5Declared a 4% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.Aug.15Issued shares of stock for the Stock dividend declared on July 5.Nov.23Purchased 30,000 shares of treasury stock for $19 per share.Dec.28Declared a $0.10-per-share dividend on common stock. 31Closed the two dividends accounts to Retained Earnings.

DATE PARTICULARS L.F. DEBIT CREDIT JAN 22 Cash dividend payable Dr. To cash (to record the…

Answered: Morrow Enterprises Inc. manufactures…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, 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 $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.
Jun.	6	Sold all of the treasury stock for $26 per share.
Jul.	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 shares of stock for the Stock 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 two dividends accounts to Retained Earnings.

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