Safari File Edit View Hi Instructions Common stock 20 stated

Safari File Edit View Hi Instructions Common stock, $20 stated value (500,000 shares authorized, 367.000 shares issued) 7 340,000 844,100 Jul, on July 5

Solution

Answer A. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 22-Jan Cash Dividends Payable          30,978.00 Cash          30,978.00 (record the cash dividend paid) 10-Apr Cash    1,633,000.00 71,000 Shares X $23 Common Stock    1,420,000.00 71,000 Shares X $20 Paid in Capital in Excess of Stated Value - Common Stock        213,000.00 71,000 Shares X $3 (record the issue of common stock) 6-Jun Cash        615,600.00 22,800 Shares X $27 Treasury Stock        387,600.00 22,800 Shares X $17 Paid in Capital in Excess of Stated Value - Treasury Stock        228,000.00 22,800 Shares X $10 (Record the issue of treasury stock) 6-Jul Stock Dividends        341,640.00 438,000 Shares X 3% X $26 Stock Dividends Distributable        262,800.00 13,140 Shares X $20 Paid in Capital in Excess of Stated Value - Common Stock          78,840.00 13,140 Shares X $6 (record the stock dividend declared) 15-Aug Stock Dividends Distributable        262,800.00 Common Stock        262,800.00 (Record the common stock issued as stock diveodends) 23-Nov Treasury Stock        504,000.00 28,000 Shares X $18 Cash        504,000.00 28,000 Shares X $18 28-Dec Cash Dividends          38,082.60 423,140 Shares X $0.09    Cash Dividends Payable          38,082.60 423,140 Shares X $0.09 (record the cash dividends declared) 31-Dec Retained Earnings        379,722.60 Stock Dividends        341,640.00 Cash Dividends          38,082.60 (Record the close of dividends accounts) 31-Dec Income Summary        131,500.00 Retained Earnings        131,500.00 (Record the net income earned during the year) Answer B. Common Stock Paid in Capital in Excess of Stated Value - Common Stock Paid in Capital in Excess of Stated Value - Treasury Stock Beg. Bal    7,340,000.00 Beg. Bal            844,100.00 Beg. Bal                        -      1,420,000.00 10-Apr            213,000.00 10-Apr      228,000.00 6-Jun        262,800.00 15-Aug              78,840.00 6-Jul End. Bal.    9,022,800.00 End. Bal.        1,135,940.00 End. Bal.      228,000.00 Cash Dividends Payable Cash Dividends Stock Dividends Beg. Bal          30,978.00 Beg. Bal                       -                38,082.60 31-Dec Beg. Bal                         -        341,640.00 31-Dec 22-Jan          30,978.00          38,082.60 28-Dec 28-Dec        38,082.60 6-Jul       341,640.00 End. Bal.          38,082.60 End. Bal.                       -   End. Bal.                         -   Stock Dividends Distributable Retained Earnings Treasury Stock Beg. Bal                         -   Beg. Bal      33,388,000.00 Beg. Bal       387,600.00      387,600.00 6-Jun 15-Aug        262,800.00        262,800.00 6-Jul 31-Dec      379,722.60            131,500.00 31-Dec 23-Nov       504,000.00 End. Bal.                         -   End. Bal.      33,139,777.40 End. Bal.       504,000.00 Answer C. Morrow Enterprises Reatined Earnings Statement For the Year Ended Dec 31, 20Y5 Beginning Balance, Jan 1, 20Y5    33,388,000.00 Net Income          131,500.00 Sub-Total    33,519,500.00 Stock Dividends        (341,640.00) Cash Dividends          (38,082.60) Ending Balance, Dec 31, 20Y5    33,139,777.40 Answer D. Morrow Enterprises Balance Sheet (Partial) As of Dec 31, 20Y5 Shareholders\' Equity Paid In Capital Common Stock - $20 Par Value (500,000 Shares Authorized, 451,140 issued)      9,022,800.00 Paid in Capital in Excess of Stated Value - Common Stock      1,135,940.00 Paid in Capital in Excess of Stated Value - Treasury Stock          228,000.00 Total Paid-in Capital    10,386,740.00 Retained Earnings    33,139,777.40 Sub-Total    43,526,517.40 Treasury Stock (28,000 Shares)        (504,000.00) Total Shareholders\' Equity    43,022,517.40