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 (600,000 shares authorized, 400,000 shares issued) $4,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 750,000 Retained Earnings 9,080,000 Treasury Stock (40,000 shares, at cost) 600,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Apr. 10. Issued 75,000 shares of common stock for $1,200,000. June 6. Sold all of the treasury stock for $720,000. 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 25,000 shares of treasury stock for $500,000. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $9,443,000. 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. 4,000,000 Apr. 10 fill in the blank 2 750,000 Aug. 15 fill in the blank 4 237,500 Dec. 31 Bal. fill in the blank 5 4,987,500 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 750,000 Apr. 10 fill in the blank 7 450,000 July 5 fill in the blank 9 190,000 Dec. 31 Bal. fill in the blank 10 1,390,000 Retained Earnings fill in the blank 12 Jan. 1 Bal. 9,080,000 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 600,000 fill in the blank 17 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock fill in the blank 22 Stock Dividends Distributable fill in the blank 24 fill in the blank 26 Stock Dividends fill in the blank 28 fill in the blank 30 Cash Dividends fill in the blank 32 fill in the blank 34 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 $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $43,200. Date Account Debit Credit Jan. 22 Cash Dividends Payable fill in the blank 36 43,200 Cash fill in the blank 38 43,200 Apr. 10. Issued 75,000 shares of common stock for $1,200,000. Date Account Debit Credit Apr. 10 Cash fill in the blank 40 1,200,000 fill in the blank 41 Common Stock fill in the blank 43 fill in the blank 44 75,000 Paid-In Capital in Excess of Stated Value-Common Stock fill in the blank 46 fill in the blank 47 45,000 June 6. Sold all of the treasury stock for $720,000. Date Account Debit Credit June 6 Cash fill in the blank 49 720,000 fill in the blank 50 Treasury Stock fill in the blank 52 fill in the blank 53 600,000 Paid-In Capital from Sale of Treasury Stock fill in the blank 55 fill in the blank 56 120,000 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. Date Account Debit Credit July 5 Stock Dividends fill in the blank 58 427,500 fill in the blank 59 Stock Dividends Distributable fill in the blank 61 fill in the blank 62 237,500 Paid-In Capital in Excess of Stated Value-Common Stock fill in the blank 64 fill in the blank 65 190,000 Aug. 15. Issued the certificates for the dividend declared on July 5. Date Account Debit Credit Aug. 15 Stock Dividends Distributable fill in the blank 67 237,500 Common Stock fill in the blank 69 237,500 Nov. 23. Purchased 25,000 shares of treasury stock for $500,000. Date Account Debit Credit Nov. 23 Treasury Stock fill in the blank 71 500,000 Cash fill in the blank 73 500,000 Dec. 28. Declared a $0.15-per-share dividend on common stock. Date Account Debit Credit Dec. 28 Cash Dividends fill in the blank 75 71,063 Cash Dividends Payable fill in the blank 77 71,063 Dec. 31. Closed the credit balance of the income summary account, $9,443,000. Date Account Debit Credit Dec. 31 Income Summary fill in the blank 79 9,443,000 Retained Earnings fill in the blank 81 9,443,000 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 Retained Earnings fill in the blank 83 498,563 fill in the blank 84 Stock Dividends fill in the blank 86 fill in the blank 87 427,500 Cash Dividends fill in the blank 89 fill in the blank 90 71,063 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 $9,443,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 fill in the blank 92 fill in the blank 94 Dividends: fill in the blank 96 fill in the blank 98 fill in the blank 100 $ fill in the blank 102 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: fill in the blank 104 fill in the blank 106 fill in the blank 108 fill in the blank 110 Total Paid-In Capital fill in the blank 111 fill in the blank 113 Total fill in the blank 114 fill in the blank 116 Total Stockholders' Equity $ fill in the blank 117 Feedback Area Feedback