Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 2015, are as follows: Common Stock, $10 stated value (800,000 shares authorized, 520,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings $5,200,000 1,000,000 11,800,000 780,000 Treasury Stock (52,000 shares, at a cost of $15 per share) The following selected transactions occurred during the year: 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 $70,200. Apr. 10. Issued 100,000 shares of common stock for $18 per share. June 6. Sold all of the treasury stock for $936,000. July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 33,000 shares of treasury stock for $660,000. 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. 5,200,000 Apr. 10 1,000,000 Aug. 15 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. Apr. 10 July 5 Dec. 31 Bal. 1,000,000 Dec. 31 Jan. 1 Bal. Nov. 23 Dec. 31 Bal. Retained Earnings Jan. 1 Bal. Dec. 31 Dec. 31 Bal. Treasury Stock 780,000 June 6 Paid-In Capital from Sale of Treasury Stock June 6 Aug. 15 Stock Dividends Distributable July 5 July 5 Stock Dividends Dec. 31 11,800,000 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 $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 $70,200. Date Account Jan. 22 Cash Dividends Payable Cash Apr. 10. Issued 100,000 shares of common stock for $18. Debit Credit 70,200 70,200 Date Account Debit Credit Apr. 10 Cash 1,800,000 Common Stock 5,200,000 X 5,200,000 X Paid-In Capital in Excess of Stated Value-Common Stock June 6. Sold all of the treasury stock for $936,000. Date June 6 Cash Treasury Stock Account Paid-In Capital from Sale of Treasury Stock Debit Credit 936,000 July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Date Account July 5 Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Stated Value-Common Stock Aug. 15. Issued the certificates for the dividend declared on July 5. Date Account Aug. 15 Stock Dividends Distributable Common Stock Debit Credit Debit Credit Nov. 23. Purchased 33,000 shares of treasury stock for $660,000. Date Nov. 23 Account Treasury Stock Cash Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Dec. 28 Cash Dividends Account Cash Dividends Payable Dec. 31. Closed the two dividends accounts to Retained Earnings. 2 Date Account Dec. 31 Retained Earnings Stock Dividends Cash Dividends Debit Credit 660,000 660,000 Debit Credit Debit Credit Prepare a retained earnings statement for the year ended December 21 2015 Accume that Morrow. Entornricos Inc. had not income for the year ended. 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 $12,272,000. Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5 Retained Earnings, January 1, 20Y5 Net Income Dividends: Cash Dividends Stock Dividends Increase in Retained Earnings Retained Earnings, December 31, 20Y5 12,272,000 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet. 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 Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5