I\'m almost done finishing my semester, I got one more assignment to turn in tha

Question

I'm almost done finishing my semester, I got one more assignment to turn in that's a PITA. This is the last of it. Please help me finish so that I can breath! Your help is greatly appreciated and valued. Thank you.

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows:

The following selected transactions occurred during the year:

1. Enter the January 1 balances in T accounts for the stockholders’ equity accounts listed. Post the journal entries from part 2 to the eight selected accounts.

Journal

2. Journalize the entries to record the transactions. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

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Retained Earnings Statement

3. Prepare a retained earnings statement for the year ended December 31, 20Y6 For those boxes in which you must enter subtracted or negative numbers use a minus sign. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

Morrow Enterprises

Retained Earnings Statement

For the Year Ended December 31, 20Y6

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Stockholders’ Equity

4. Prepare the Stockholders’ Equity section of the December 31, 20Y6 balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

Stockholders’ Equity

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Paid-in capital:

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Common stock, $20 stated value (500,000 shares authorized, 353,000 shares issued) $7,060,000 Paid-In Capital in Excess of Stated Value—Common Stock 811,900 Retained Earnings 33,598,000 Treasury Stock (25,500 shares, at cost) 484,500

Explanation / Answer

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Accounting Equation Date Description Post. Ref. Debit Credit Assets Liabilities Equity Jan. 22 Cash Dividends payable 32750 -32750 Cash 32750 -32750 (To record payment of cash dividends) Apr. 10 Cash (72000 x $24) 1728000 1728000 Common stock (72000 x $20) 1440000 1440000 Paid-in capital in excess of stated value-common stock (72000 x $4) 288000 288000 (To record issuance of common stock) Jun. 6 Cash (25500 x $25) 637500 637500 Treasury stock 484500 484500 Paid-in capital from sale of Treasury stock 153000 153000 (To record sale of treasury stock) Jul. 5 Stock dividends (17000 x $26) 442000 340000 -442000 Stock dividends distributable [4% x (353000 + 72000) x $20] 340000 102000 Paid-in capital in excess of stated value-common stock [17000 x ($26 - $20)] 102000 (To record declaration of stock dividends) Aug. 15 Stock dividends distributable 340000 -340000 340000 Common stock 340000 (To record distribution of stock dividends) Nov. 23 Treasury stock (25000 x $19) 475000 -475000 Cash 475000 -475000 (To record purchase of treasury stock) Dec. 28 Cash dividends [$0.09 x (353000 + 72000 + 17000 - 25000)] 37530 -37530 Cash dividends payable 37530 37530 (To record declaration of cash dividends) Dec. 31 Income summary 1149500 -1149500 Retained earnings 1149500 1149500 (To close net income to retained earnings) Dec. 31 Retained earnings 479530 -479530 Cash dividends 37530 37530 Stock dividends 442000 442000 (To close dividends to retained earnings)

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