Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts f Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common Stock, $10 stated value (450,000 shares authorized, 300,000 shares issued) $3,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 550,000 Retained Earnings 6,810,000 Treasury Stock (30,000 shares, at cost) 450,000 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 $32,400. Apr. 10. Issued 55,000 shares of common stock for $880,000. June 6. Sold all of the treasury stock for $540,000. 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 19,000 shares of treasury stock for $380,000. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $7,082,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions and post to the eight selected accounts 3. Prepare a retained earnings statement for the year ended December 31, 20Y5 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet us- ing Method 1 of Exhibit 8