Entries for selected corporate transactions Instructions Chart of Accounts Amount Descriptions Accounts Journal Statement of Stockholders' Equity Stockholders' Equity Instructions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2018, are as follows: Common stock, $20 stated value (500,000 shares authorized. 363.000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25.900 shares, at cost) $7.260,000 334,900 32,541,000 492,100 The following selected transactions occurred during the year: Jan. 22 Apr. Jun 10 6 5 Paid cash dividends of $0.09 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $30,339 Issued 80.000 shares of common stock for $23 per share. Sold all of the treasury stock for $25 per share. Declared a 3% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Issued the certificates for the dividend declared on July 5. Purchased 33,000 shares of treasury stock for $10 per share Declared a $0.10-per-share dividend on common stock. Closed the two dividends accounts to Retained Earnings. Nov. Dec. 15 23 28 31 Required: 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. If required, round your answers to the nearest dollar. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of $1,218,500 to the retained earnings account Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. 3. Prepare a statement of stockholders' equity for the year ended December 31, 2016. Assume that net income was $1,218,500 for the year ended December 31, 20Y6. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter"0"* 4. Prepare the "Stockholders' Equity section of the December 31, 2016. balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* *Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. TAccounts 1. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed Post the journal entries from part 2 to the eight selected accounts. If required, round your answers to the nearest dollar. Common Stock Jan. 1 Bal. 7280.000 Apr. 10 Aug. 15 Dec 31 Bal. Pald-in Capital In Excess of stated Value-Common Stock Jan. 1 Bal. 334.900 Apr. 10V Jul. 5 Dec 31 Bal. Retained Earnings Jan. 1 Bal. 32.541.00 Dec 31 Dec 31 Bal. Treasury Stock Jan. 1 Bal. Jun Nov 23 Dec. 31 Bal. Pald-in Capital from Sale of Treasury Stock Jun. 6 Stock dividende Distributable Aug. 15 Jul. 5 TL VC Stock dividende Dec. 31 V Cash Dividende Dec. 31 V Dec. 28 Journal 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of $1,218,500 to the retained earnings account. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. How does grading work? PAGE 10 JOURNAL Score: 209/249 ACCOUNTING EQUATION DATE DESCRIPTION CREDIT ASSETS LIABILITIES EQUITY DEBIT 30,339.00 Jan. 22 Cash Dividends Payable Cash 30,339.00" 1,840,000.00 Apr. 10 Cash Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Jun. 6 Cash 1,600,000.00 240,000.00 647,500.00 Treasury Stock 492,100.00 155,400.00 Paid-in Capital from Sale of Treasury Stock Jul 5 Stock dividends 345,540.00 Stock dividends Distributable 627,000.00 627,000.00 Paid-In Capital in Excess of Stated Value-Common Stock Aug. 15 Stock dividends Distributable Common Stock Nov. 23 Treasury Stock Cash Dec. 28 Cash Dividends Cash Dividends Payable Dec. 31 Retained Earnings Stock dividends Cash Dividends Statement of Stockholders' Equity Shaded cells have feedback. 3. Prepare a statement of stockholders' equity for the year ended December 31, 2016. Assume that net income was $1.218.500 for the year ended December 31, 2016. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter"0" Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Question not attempted. Morrow Enterprises Inc. Score: 0/174 Statement of Stockholders' Equity For the Year Ended December 31, 20Y6 Common Stock Paid In Capital in Excess of Stated Value Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total Points: 0/36 Stockholders' Equity 4. Prepare the 'Stockholders' Equity section of the December 31, 2016 balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Score: 48/79 Morrow Enterprises Inc. Balance Sheet December 31, 2046 Stockholders' Equity Paid-in capital: Common stock, $20 stated value (500,000 shares authorized, 456,290 shares issued) Excess of issue price over stated value From sale of treasury stock Total paid-in capital Retained earnings Total 9 Treasury stock (55,000 shares at cost) 10 Total stockholders' equity