Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, $10 stated value (900,000 shares authorized, 600,000 shares issued) $6,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 1,150,000 Retained Earnings 13,620,000 Treasury Stock (60,000 shares, at cost) 840,000 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 $81,000. Apr. 10. Issued 115,000 shares of common stock for $2,070,000. June 6. Sold all of the treasury stock for $17 per share 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 shares of stock for the stock dividend declared on July 5 Nov. 23. Purchased 38,000 shares of treasury stock for $19 per share. Dec. 28. Declared a $0.18-per-share dividend on common stock. 31, Closed the credit balance of the income summary account, $14,165,000 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. If required, round to one decimal place. Common Stock Dan. 1 Bal Apr. 10 6,000,000 V 1,150,000 Aug. 15 286,000 X 7,436,000 x . 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Dan. 1 Bal. Apr. 10 1,150,000 920,000 286,000 X July 5 2,356,000 X Dec. 31 Bal. Apr. 10. Issued 115,000 shares of common stock for $2,070,000. Debit Credit Date Account Apr. 10 Cash 2,070,000 Common Stock 1,150,000 Paid-In Capital in Excess of Stated Value-Common Stock 920,000 June 6. Sold all of the treasury stock for $17 per share. Account Debit Credit Date Cash 1,020,00 June 6 Treasury Stock v 840,000 Paid-In Capital from Sale of Treasury Stock 180,000 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. Debit Credit Date Account July 5 Stock Dividends 7,150,00 X Stock Dividends Distributable 357,500. 6,792,50 X Paid-In Capital in Excess of Stated Value-Common Stock Aug. 15. Issued shares of stock for the dividend declared on July 5. Debit Credit Date Account Stock Dividends Distributable 357,500. Aug. 15 |357,500. Common Stock Nov. 23. Purchased 38,000 shares of treasury stock $19 per share Debit Credit Date Account Treasury Stock Nov. 23 722,000 Cash 722,000 Dec. 28. Declared a $0.18-per-share dividend on common stock. Account Debit Credit Date Cash Dividends 712,750.0 X Dec. 28 Cash Dividends Payable v/ 712,750.0 x Dec. 31. Closed the credit balance of the income summary account, $14,165,000. Debit Credit Date Account Income Summary Dec. 31 14,165,000 Retained Earnings 14,165,000 Dec. 31. Closed the two dividends accounts to Retained Earnings. Debit Credit Date Account Retained Earnings 1,070,250 X Dec. 31 Stock Dividends 357,500.0 X Cash Dividends 712,750.0 X 3. Prepare a retained earnings statement for the year ended December 31, 20Y6 Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y6 Retained Earnings, January 1, 20Y6 13,620,000 Net Income 14,165,000 Cash Dividends 357,500.0 X Stock Dividends v 712,750.0 X 13,301,474X Change in retained earnings Retained Earnings, December 31, 20Y6 S26,714,750.0 X 4. Prepare the Stockholders' Equity section of the December 31, 20Y6, balance sheet. Morrow Enterprises Inc. Balance Sheet December 31, 20Y6 Stockholders' Equity Paid-In-Capital: 7,436,000X Common Stock, $10 stated value (900,000 shares authorized, 750,750 shares issued) 2,356,000 X Excess of issue price over stated value From Sale of Treasury Stock 180,000 9,972,000 X Total Paid-In Capital Retained Earnings 26,921,474 X 36,893,474 X Total Treasury Stock (38,000 shares, at cost) 722,000 36,171,474 x Total Stockholders' Equity