PR 13-4A Entries for selected corporate transactions Morrow of Morrow Enterprise

Question

PR 13-4A Entries for selected corporate transactions Morrow of Morrow Enterprises Inc, with balances on January 1, 20Y5, are as follows: OBJ. 3,4, 5, 7 Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts equity Common Stock, $20 stated value (500,000 shares authorized, 825,000 . . . .33,600,000 450,000 Treasury Stock (25,000 shares, at a cost of $18 per share) . . . 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.

Explanation / Answer

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Common Stock APIC - Common Stock Date Debit Credit Date Date Debit Credit Date 7500000 Beg.Bal. 825000 Beg.Bal. 1500000 Apr.10 300000 Apr.10 360000 Aug.15 90000 Aug.15 0 9360000 0 1215000 9360000 End.Bal. 1215000 End.Bal. Treasury Stock Retained Earnings Date Debit Credit Date Date Debit Credit Date Beg.Bal. 450000 450000 Jun.26 Dec.31 450000 33600000 Beg.Bal. Nov.23 570000 Dec.31 43800 1020000 450000 493800 33600000 570000 33106200 End.Bal. Stock dividend Cash dividend Date Debit Credit Date Date Debit Credit Date Aug.15 450000 450000 July.5 Dec.28 43800 43800 Dec.31 450000 450000 43800 43800 Stock dividend distributable Cash dividend Payable Date Debit Credit Date Date Debit Credit Date Aug.15 450000 450000 July.5 Jan.22 28000 28000 Beg.Bal. 42000 Dec.28 450000 450000 28000 70000 43800 End.Bal. Paid in capital fro sale of trasury stock Cash Date Debit Credit Date Date Debit Credit Date 175000 June.26 Apr.10 1800000 28000 Jan.22 Jun.26 625000 570000 Nov.23

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