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, 352,000 shares issued) $7,040,000 Paid-In Capital in Excess of Stated Value-Common Stock 774,400 Retained Earnings 32,153,000 Treasury Stock (25,200 shares, at cost) 478,800 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.05 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $16,340. Aprг. 10 Issued 73,000 shares of common stock for $25 per share. Jun. 6 Sold all of the treasury stock for $27 per share. Jul. 5 Declared a 5% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Aug. 15 Issued the certificates for the dividend declared on July 5. Nov. 23 Purchased 25,000 shares of treasury stock for $18 per share. Dec. 28 Declared a $0.08-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings.
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, 352,000 shares issued) $7,040,000 Paid-In Capital in Excess of Stated Value-Common Stock 774,400 Retained Earnings 32,153,000 Treasury Stock (25,200 shares, at cost) 478,800 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.05 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $16,340. Aprг. 10 Issued 73,000 shares of common stock for $25 per share. Jun. 6 Sold all of the treasury stock for $27 per share. Jul. 5 Declared a 5% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Aug. 15 Issued the certificates for the dividend declared on July 5. Nov. 23 Purchased 25,000 shares of treasury stock for $18 per share. Dec. 28 Declared a $0.08-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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