Entries for Selected Corporate Transactions Morow Exterprises Inc. manufactures bathroom fixtures. The stockholders' culty accounts of Marrow Enterprises Inc., with balances on January 1, 2045, are as follows: Common Stuck, s10 stated value (300,000 shares $2,000,000 authorized, 200,000 shares issued) Paid-In Capital In Excess of Stated Valuc-Common Stock 400,000 Retained Farrings 4,540,000 Treasury Stock (20,000 shares, at a cost of $15 per 300,000 share) The following selected transactions occurred during the year: lan. Paid cash dividends or 0.14 per share on the common stock. The dividend had been 22. properly recorded when declared on December 1 of the preceding fiscal year for 525,200. for 10 Issued 40,000 shares of common stock for $16 per share. June 6. Sold al of the treasury stock for $360,000 July 5. 1 5 Dedared a 4% stock dividend on cammen stock, to be capitalized at the market price af the stock, which is sin per share. Aug Issued the certificates for the dividend declared on July 5 13 Nov. 23 Purchased 13,000 shares of treasury stock for $260,000 Dec. Declared a $0.17-per-share dividend on common stock. - 28 31. Closed the two dicends secounts to Retained Earnings Required: 1. The January 1 balances have been entered in accounts for the stockholders' cculty accounts. Record the above transactions in the accounts and provide the December 31 balance where appropriate Common Stock pan. 1 Bal. Apr. 10 12.09.15 2,000,000 poc 31 Bai. Paid-In Capital in Excess of Stated Value-Common Stock han 1 Bal 400,000 Apr. 10 July 5 5 - Dec. 31 Bal. Dec. 31 4,540,000 Retained Earnings Jan. 1 Bal. Des 31 por 3: Ral Treasury Stock 300.000 June Jan. 1 Ual. Nov. 23 Dec. 31 Bal. Bs Paid-In Capital from Sale of Treasury Stock June 6 Stock Dividends Distributable A, 15- Stock Dividends Des 31 July Dec. 28 Cash Dividends Dec. 31 2. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank Jan. 22. Paid cash dividends of so.14 per share on the common stock. The dividend had been property recorded when declared on December 1 of the preceding fiscal year for $25,200. Debit Credit Date Jan. 22 Account Cash Dividends Payable Cash Apr. 10. Issued 40,000 shares of common stock for $16. Date Account Debit Credit 40 Cash 10 Common Stock Paid-In Capital in Dxcess of stated Velve-Common Stock June 6. Sold all of the treasury stock for $360,000. Account Debit Credit Date Jure G Cash Treasury Stock Pad-in Capital from Sale of Treasury Stock July 5. Dedared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Debit Credit Date Account July Stock Dividends 5 Stock Dividends Distributable Paid-In Capital in Excess of Stated Value-Common Stock Aug. 15. izued the certificates for the dividend declared on July 5. Debit Credit Date Account Aug, 15 Stock Dividends Distributable Commen Stock . Nov. 23. Purchased 13,000 shares of treasury stock for $200,000. Debit Credit Date Nov. 23 Account Treasury Stock Dec. 28. Dedard 4 $0.17-per-share divided on common stock Dabit Credit Data Account Dec, 28 Desh Dividends , Cash Dividends Payable Dec. 31. Closed the two dividends accounts to retained Earnings Debit Credit Date Dec. 31 Account Reland Earnings Stock Dividencs Cash Dividends 3. Prepare a retained earnings statement for the year ended December 31, 2045. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 2045, of $4,722,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2015 Retained Earnings, January 1, 2015 Net Income Dividends: Cash Dividends Stock Dividends Increase in Retained Earnings Retained Earnings, December 31, 2015 4. Prepare the Stockholders' Equity section of the December 31, 2045, balance sheet. Morrow Enterprises Inc. Stockholders' Equity As of December 31, 2045 Paid-In-Capital: Common Stock, $10 Stated Value Excess of Stated Value-Common Stock Paid-In Capital, Common Stock From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Treasury Stock (at Cost) Total Stockholders' Equity