2014, are as follows:

Common Stock, $20 stated value (500,000 shares

authorized, 375,000 shares issued). . . . . . . . . . . . . . . . . . . . . . . . .
Paid-In Capital in Excess of Stated ValueCommon Stock. . . . . . .
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury Stock (25,000 shares, at cost) . . . . . . . . . . . . . . . . . . . . . .
The following selected transactions occurred during the year:
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 per share.
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.
Instructions
accounts listed.
Dividends.
selected accounts.
2014.
balance sheet.

$7,500,000
825,000
33,600,000
450,000

1., 2.
Common Stock
Jan. 1 Bal.
Apr. 10
Aug. 15
Dec. 31 Bal.

7,500,000
1,500,000
360,000
9,360,000

Jan. 1 Bal.
Nov. 23
Dec. 31 Bal.

Treasury Stock
450,000
570,000
570,000

Paid-In Capital from Sale of Trea

Paid-In Capital in Excess of Stated Value
Jan. 1 Bal.
825,000
Apr. 10
300,000
July 5
90,000
Dec. 31 Bal.
1,215,000

Dec. 31

Retained Earnings
493,800 Jan. 1 Bal.
Dec. 31
Dec. 31 Bal.

33,600,000
1,125,000
34,231,200

Aug. 15

Stock Dividends Distribut

360,000

July 5
Dec. 31 Bal.

Stock Dividends
450,000
0

Dec. 28
Dec. 31 Bal.

Cash Dividends
43,800
0

2.
Jan. 22

Cash Dividends Payable

Cash

28,000

Apr. 10

Cash
Common Stock
Paid-In Capital in Excess of Stated Value

June 6

Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock

650,000

July 5

Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Stated Value

450,000

Aug. 15

Stock Dividends Distributable

360,000

1,800,000

Common Stock

3.

Nov. 23

Treasury Stock
Cash

Dec. 28

Cash Dividends
Cash Dividends Payable

43,800

31

Income Summary
Retained Earnings

1,125,000

31

Retained Earnings
Stock Dividends
Cash Dividends

493,800

MORROW ENTERPRISES INC.

Retained Earnings Statement
For the Period Ended December 31, 2014
Retained earnings (January 1, 2014)
Net income
Less: Cash dividends
Stock dividends
Increase in retained earnings
Retained earnings (December 31, 2014)

4.

570,000

$ 33,600,000
$ 1,125,000
(43,800)
(450,000)
631,200
$ 34,231,200

MORROW ENTERPRISES INC.

Balance Sheet
December 31, 2014
Stockholders' Equity
Paid-in capital:
Common stock, $20 stated value
(500,000 shares authorized, 468,000 shares issued)
Excess of issue price over stated value
From sale of treasury stock
Total paid-in capital
Retained earnings
Total
Deduct treasury stock (30,000 shares at cost)

$ 9,360,000
1,215,000
200,000
$ 10,775,000
34,231,200
$ 45,006,200
570,000

Total stockholders' equity

$ 44,436,200

Treasury Stock
June 6

450,000

Capital from Sale of Treasury Stock

June 6
200,000
Dec. 31 Bal.
200,000

ock Dividends Distributable

July 5
Dec. 31 Bal.

360,000
0

Stock Dividends
Dec. 31

450,000

Cash Dividends
Dec. 31

43,800

46,800

1,500,000
300,000

450,000
200,000

360,000
90,000

360,000

570,000

43,800

1,125,000

450,000
43,800