Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of…

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 2016, 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)450,000The 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 the certificates for the 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 credit balance of the income summary account, $1,125,000.31Closed the two dividends accounts to Retained Earnings.Required:A.Enter the January 1 balances in T accounts for the stockholders’ equity accounts listed.B.Journalize the entries to record the transactions, and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles.C.Prepare aretained earnings statement for the year ended December 31, 2016. Enter all amounts as positive numbers. The word “Less” is not required.*D.Prepare the Stockholders’ Equity section of the December 31, 2016, balance sheet. “Less” or “Deduct” will automatically appear if it is required. ** Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

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