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 (350,000 shares authorized, 240,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (24,000 shares, at a cost of $14 per share) The following selected transactions occurred during the year: $2,400,000 450,000 5,450,000 336,000 Jan. 22. Paid cash dividends of $0.15 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 45,000 shares of common stock for $16 per share. June 6. Sold all of the treasury stock for $408,000. July 5. Declared a 4% 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 15,000 shares of treasury stock for $285,000. Dec. 28. Declared a $0.18-per-share dividend on common stock. 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. 2,400,000 Jan. 1 Bal. Dec. 31 Bal. Common Stock Jan. 1 Bal. 2,400,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. Dec. 31 Bal. Retained Earnings 450,000 Jan. 1 Bal. 5,450,000 Dec. 31 Bal. Treasury Stock 336,000 Previous Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends 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 $0.15 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. Date Jan. 22 Account Apr. 10. Issued 45,000 shares of common stock for $16. Debit Credit Apr. 10. Issued 45,000 shares of common stock for $16. Date Apr. 10 Account June 6. Sold all of the treasury stock for $408,000. Date June 6 Account Debit Credit Debit Credit July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. Date July 5 Account Aug. 15. Issued the certificates for the dividend declared on July 5. Debit Credit Previous Aug. 15. Issued the certificates for the dividend declared on July 5. Date Aug. 15 Account Nov. 23. Purchased 15,000 shares of treasury stock for $285,000. Date Nov. 23 Account Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Dec. 28 Account Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Dec. 31 Account Debit Credit Debit Credit Debit Credit Debit Credit Previous Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Dec. 31 Account Debit Credit 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 $5,668,000. Dividends: Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 2015 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Morrow Enterprises Inc. Stockholders' Equity Previous Dividends: 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. Paid-In-Capital: Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5 Total Paid-In Capital Total Stockholders' Equity Previous