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: Common Stock, $10 stated value (500,000 shares authorized, 340,000 shares issued) $3,400,000 Paid-In Capital in Excess of Stated Value-Common Stock 650,000 Retained Earnings 7,720,000 Treasury Stock (34,000 shares, at cost) 510,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $42,840. Apr. 10. Issued 65,000 shares of common stock for $1,040,000. June 6. Sold all of the treasury stock for $612,000. July 5. Declared 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 certificates for the dividend declared on July 5. Nov. 23. Purchased 21,000 shares of treasury stock for $420,000. Dec. 28. Declared a $0.17-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $8,029,000. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances 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. Common Stock Jan. 1 Bal. 3,400,000 Apr. 10 Aug. 15 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 650,000 Dec. 31 Bal. Retained Earnings Jan. 1 Bal. 7,720,000 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. 510,000 June 6 Nov. 23 Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends 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 $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $42,840. Date Account Debit Credit Jan. 22 Cash Dividends Payable Cash Apr. 10. Issued 65,000 shares of common stock for $1,040,000. Date Account Debit Credit Apr. 10 June 6. Sold all of the treasury stock for $612,000. Date Account Debit Credit June 6 July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Date Account Debit Credit July 5 Aug. 15. Issued the certificates for the dividend declared on July 5. Date Account Debit Credit Aug. 15 Nov. 23. Purchased 21,000 shares of treasury stock for $420,000. Date Account Debit Credit Nov. 23 Dec. 28. Declared a $0.17-per-share dividend on common stock. Date Account Debit Credit Dec. 28 Dec. 31. Closed the credit balance of the income summary account, $8,029,000. Date Account Debit Credit Dec. 31 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $8,029,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 Dividends: $ 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5 Paid-In-Capital: Total Paid-In Capital Total Total Stockholders' Equity $