(3) Muin Menu Homepage-Fort V Retained Earnings Treasury Stock Pald-In Capital from Sale of Treasury Stock Stock Dividends Distributable 4. Prepare the Stockholders' Equity section of the December 31,20Y5, balance sheet. Dec. 31. Closed the two dividends accounts to Retained Earnings. 3. Prepare a ratoined eaming statemient for the year ended December 31, 20y5. Assume that Morrow Enterprises Inc. hed net income for the year ended December 31,205, of 57,082,000. Dec. 28. Declared a 50.16 -per-share dividend on common stock. Dec. 31. Closed the credit balance of the income summary account, $7,082,000. 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 22. Paid cash dividends of $0.13 per share on the common stock. The dividend had been properiy recorded when declared on December 1 of the preceding fiscal yeor for $35,100. Apr. 10. Issued 55,000 shares of common stack for $880,000. June 6. Sold all of the treosury stock for $40,000. July 5. Deciared a $% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per 5 har 1. The January 1 bolances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. July 5. Dedared a 5% stock avidend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchesed 19,000 sneres of treasury stock for 5380,000 3. Prepare a retained eamings statement for the year ended December 31, 20y5: Assume that Morrow Enterprises Inc. had net income for the year ended December 31,205, of $7,082,000. 4. Srepare the Stockholders' Equity section of the Decumber 31,20Y5, Dolance sheet. Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc, with balances on January 1 , 20Y5, are as follows: The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.13 per share on the common stock. The dividend nad been property recorded when declared on December 1 of the preceding fiscel year for $35,100. Apr, 10. 15sued 55,000 shares of common stock for $880,000. June 6 . Sold all or the treasury stock for $540,000 July 5. Deciared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Aug. 15. Issued the certificotes for the dividend declared on July 5. Nov. 23. Purchased 19,000 shares of treasury stock for $380,000. Dec 28. Declared a $0.16-per-share dividend on common stock. 31. Closed the credit batance of the income summary account, $7,082,000. 31. Closed the two dividends accounts to Retained Earnings