i need the retained earnings statement for the following: Morrow Enterprises Inc

Question

i need the retained earnings statement for the following:

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 2016, are as follows:

The following selected transactions occurred during the year:

Prepare the Stockholders’ Equity section of the December 31, 2016, balance sheet. “Less” or “Deduct” will automatically appear if it is required. *

AGAIN... I NEED THE "RETAINED EARNINGS STATEMENT". the journal entries already have answers to them. if you look up the privious aswers, it will give you the essential information need to complete the retained earning.

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

Explanation / Answer

Retained Earnings statement for the year ended December 31, 2016

Retained earnings (beginning balance) . . . . . . . . . . . $, 33,600,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,125,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,725,000
Less: Cash dividends . . . . . . . . . . . . . .$.56,800
. . . . .Stock dividends . . . . . . . . . . . . . $ 575000 . . . $ 631,800
Retained earnings (ending balance) . . . . . . . . . . $ 34,093,200

Note:

1. To begin with you need to know that there are 500,000 shares of common stock issued but, because of the Treasury Stock, only 475,000 shares outstanding. You only need to worry about the shares outstanding when calculating dividends.

Beggining no. shares =475000

add new issue          = 75000

                               550000

add stock shares after sale =25000

                                         =575000

add capitalised shares on july= 23000

Total o/s no. of sares          = 598000

less new stock issue         =(30000)

closing no. of shares         = 568000

2. Dividend on common shares

   dividend= Number of shares* dividend per share

                 = 568000*.10= $56,800

3. Stock dividend

   Stock dividend = Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.

=575000 * 4% * $ 25 = $575000

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