Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2014, are as follows:
Common Stock, $20 stated value (500,000 shares authorized, 375,000 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 of $0.08 per share on the common stock. The dividend had been properly recorded when declared on Dec 1, of the preceding fiscal year, for $28,000
Apr. 10: Issued 75,000 shares of common stock for $24 per share
June 6: Sold all of the treasury stock for $26 a share
July 5: Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 a share.
Aug. 15: Issued the certificates for the dividend declared on July 5th
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, 1,125,000
31: Closed the two dividend accounts to retained earnings
Journalize these and if possible give the retained earnings statement and stockholders equity
