I Need Dates In The Blue Section And Amount Next To It

I Need Dates In The Blue Section And Amount Next To It B Journalize

I Need Dates In The Blue Section And Amount Next To It B 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.

JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT

C. Prepare a retained earnings statement A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year. for the year ended December 31, 2016. Enter all amounts as positive numbers.

The word “Less†is not required. 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, 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. Question not attempted. Stockholders’ Equity 1 Paid-in capital: Feedback Check My Work Feedback Check My Work Explanation answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here answer here Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity The owners’ equity in a corporation. 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) $ 7,500,000 Paid-In Capital in Excess of Stated Value—Common Stock 825,000 Retained Earnings 33,600,000 Treasury Stock (25,000 shares, at cost) 450,000 The following selected transactions occurred during the year: Jan.

22 Paid cash dividends Distribution of a corporation’s earnings to stockholders. of $0.08 per share on the common stock The stock outstanding when a corporation has issued only one class of 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. Jun.

6 Sold all of the treasury stock for $26 per share. Jul. 5 Declared a 4% stock Shares of ownership of a corporation. 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 30,000 shares of treasury stock for $19 per share. Dec. 28 Declared a $0.10-per-share dividend on common stock. 31 Closed the credit balance of the income summary account, $1,125,000.

31 Closed 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 a retained earnings statement A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year. 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. CHART OF ACCOUNTS Morrow Enterprises Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 313 Paid-In Capital in Excess of Stated Value-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary Amount Descriptions Cash balance, July 31, 2016 Common stock, $20 stated value; 500,000 shares authorized, 375,000 issued Common stock, $20 stated value; 500,000 shares authorized, 438,000 issued Common stock, $20 stated value; 500,000 shares authorized, 468,000 issued Decrease in retained earnings Dividends Excess of issue price over stated value For the Year Ended December 31, 2016 From sale of treasury stock Increase in retained earnings Net income Net loss Retained earnings Retained earnings, December 31, 2016 Retained earnings, January 1, 2016 Total Total paid-in capital Total stockholders’ equity

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts and balances on January 1, 2016, are as follows: Common Stock, $20 stated value (375,000 shares issued) $7,500,000; Paid-In Capital in Excess of Stated Value—Common Stock $825,000; Retained Earnings $33,600,000; Treasury Stock (25,000 shares, at cost) $450,000.

During 2016, the following transactions occurred:

  • January 22: Paid cash dividends of $0.08 per share on the 375,000 shares outstanding. Total dividends = 375,000 x $0.08 = $30,000. The dividend declaration was recorded in the previous year on December 1.
  • April 10: Issued 75,000 shares of common stock for $24 per share.
  • June 6: Sold all treasury stock (25,000 shares) for $26 per share, totaling $650,000.
  • July 5: Declared a 4% stock dividend, to be capitalized at a $25 market price.
  • August 15: Issued certificates for the stock dividend declared on July 5.
  • November 23: Purchased 30,000 shares of treasury stock at $19 per share, totaling $570,000.
  • December 28: Declared a $0.10 per share dividend on the 468,000 shares issued after the April 10 issuance.
  • December 31: Closed income summary and dividends accounts to Retained Earnings.

Assignment Tasks

  1. Enter the January 1 balances in T accounts for the stockholders’ equity accounts listed.
  2. Journalize the entries to record the transactions, and post to the selected accounts.
  3. Prepare a retained earnings statement for the year ended December 31, 2016.
  4. Prepare the stockholders’ equity section of the December 31, 2016, balance sheet.

Paper For Above instruction

Introduction

The management of a corporation must maintain accurate and detailed financial records to reflect the true financial position and performance of the enterprise. This process involves journalizing transactions, preparing financial statements such as the retained earnings statement, and delineating the stockholders’ equity section of the balance sheet. This report provides a comprehensive walkthrough of these procedures based on the specific transactions and balances of Morrow Enterprises Inc. for the year ending December 31, 2016, illustrating fundamental accounting principles in action.

Part A: Initial Balances in T Accounts

To begin, the initial balances on January 1, 2016, for the stockholders’ equity accounts are established. The common stock account is credited with $7,500,000, representing 375,000 shares issued at a $20 stated value. Paid-in capital in excess of stated value is credited with $825,000, reflecting the amount received over the stated value during issuance. Retained earnings are credited with $33,600,000, representing accumulated earnings to that date. Treasury stock, a contra-equity account, is debited with $450,000 for 25,000 shares at cost (i.e., the amount paid to repurchase the shares). These balances form the foundation for subsequent transactions and adjustments.

Part B: Journal Entries for 2016 Transactions

The core of the accounting process involves journalizing transactions as they occur, following the principles of double-entry accounting, which ensures that the accounting equation remains balanced. The journal entries for each of the listed transactions are as follows:

  1. January 22: Declaration and payment of cash dividends
  2. Debit: Dividends ($30,000)
  3. Credit: Cash ($30,000)
  4. Description: Payment of annual dividends to shareholders based on prior declaration.
  5. April 10: Issuance of new shares of common stock
  6. Debit: Cash (75,000 shares x $24 = $1,800,000)
  7. Credit: Common Stock (75,000 x $20 = $1,500,000)
  8. Credit: Paid-In Capital in Excess of Stated Value ($1,800,000 - $1,500,000 = $300,000)
  9. June 6: Sale of treasury stock
  10. Debit: Cash (25,000 x $26 = $650,000)
  11. Credit: Treasury Stock (25,000 x $19 = $475,000)
  12. Credit: Paid-In Capital from Sale of Treasury Stock ($650,000 - $475,000 = $175,000)
  13. July 5: Declaration of 4% stock dividend
  14. Market price per share: $25
  15. Shares outstanding before dividend: 375,000 + 75,000 = 450,000 (after issuance) and 468,000 after new issuance.
  16. Number of shares for dividend: 4% of 468,000 = 18,720 shares.
  17. Debit: Stock Dividends (18,720 x $25 = $468,000)
  18. Credit: Stock Dividends Distributable (same amount)
  19. Description: Declaration of stock dividend at market value.
  20. August 15: Issuance of certificates for stock dividend
  21. No journal entry required; transfer from stock dividends distributable to stockholders’ equity.
  22. November 23: Purchase of treasury stock
  23. Debit: Treasury Stock (30,000 x $19 = $570,000)
  24. Credit: Cash ($570,000)
  25. Description: Repurchase of the company’s own shares at $19 per share.
  26. December 28: Declaration of cash dividend at $0.10 per share
  27. Shares outstanding after April issuance are 468,000, thus total dividend = 468,000 x $0.10 = $46,800.
  28. Debit: Dividends (or Cash Dividends) ($46,800)
  29. Credit: Dividends Payable ($46,800)
  30. December 31: Closing income summary and dividends to retained earnings
  31. Debit: Income Summary ($1,125,000)
  32. Credit: Retained Earnings ($1,125,000)
  33. Then, close dividends accounts: Debit: Dividends ($76,800), Credit: Retained Earnings ($76,800).

Part C: Retained Earnings Statement for 2016

The retained earnings statement summarizes the changes in retained earnings over the fiscal year. Starting with the opening balance of $33,600,000, add net income of $1,125,000, subtract total dividends paid (cash dividends of $30,000 and stock dividends valued at $468,000 for the stock dividend plus cash dividend of $46,800), resulting in the closing balance.

Calculations:

- Beginning retained earnings: $33,600,000

- Add: Net income: $1,125,000

- Less: Cash dividends ($30,000)

- Less: Stock dividends ($468,000)

- Less: Cash dividend on December 28 ($46,800)

- Ending retained earnings: $33,600,000 + $1,125,000 - $30,000 - $468,000 - $46,800 = $34,180,200

Part D: Stockholders’ Equity Section of Balance Sheet

As of December 31, 2016, the stockholders’ equity components are:

  • Common Stock: 375,000 issued prior + 75,000 issued on April 10 = 450,000 shares at $20 stated value = $9,000,000
  • Paid-in Capital in Excess of Stated Value: Initial $825,000 + $300,000 from April issuance + $175,000 from sale of treasury stock = $1,300,000
  • Retained Earnings: $34,180,200
  • Treasury Stock: 30,000 shares at $19 cost = $570,000 (deducted)

Total stockholders’ equity equals: $9,000,000 + $1,300,000 + $34,180,200 - $570,000 = $43,910,200.

Conclusion

This comprehensive approach demonstrates the application of fundamental accounting procedures: recording initial balances, accurately journalizing transactions, preparing financial statements, and reporting the stockholders’ equity section of the balance sheet. Proper adherence to accounting standards ensures transparent and reliable financial reporting, which is vital for management, investors, and other stakeholders.

References

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  • Financial Accounting Standards Board (FASB). (2023). Accounting Standards Codification. Norwalk, CT.

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