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 (550,000 shares authorized, 360,000 shares issued) $3,600,000 Paid-In Capital in Excess of Stated Value-Common Stock 700,000 Retained Earnings 8,170,000 Treasury Stock (36,000 shares, at cost) 540,000 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 $48,600. Apr. 10. Issued 70,000 shares of common stock for $1,260,000. June 6. Sold all of the treasury stock for $18 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 23,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.18-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $8,497,000 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 3.600.000 n. 1 Bal. Apr 10 Aug.15 Dec 31 Bal 700,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 700,000 Apr. 10 July 5 Dec. 31 Bal. Retained Earnings Dec. 31 1 Bal. 8,170,000 Dec. 31 Dec. 31 Bal Treasury Stock 540,000 June 6 Jan. 1 Bal. Nov. 23 Dec. 31 Bal Paid-In Capital from Sale of Treasury Stock June 6 Stock Dividends Distributable Aug. 15 July 5 v Stock Dividends July 5 Dec. 31 Cash Dividends Dec. 28 Dec. 31 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 $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $48,600. Credit Date Account Debit Apr. 10. Issued 70,000 shares of common stock for $1,260,000. Credit Date Account Debit Apr. 10 June 6. Sold all of the treasury stock for $18 per share. Credit Date Account Debit 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 Aug. 15. Issued shares of stock for the dividend declared on July 5. Debit Credit Date Account Aug. 15 Nov. 23. Purchased 23,000 shares of treasury stock for $20 per share. Debit Date Account Credit Nov. 23 Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Credit Account Debit Dec. 28 Dec. 31. Closed the credit balance of the income summary account, $8,497,000. Date Debit Account Credit Dec. 31 Dec. 31. Closed the two dividends accounts to Retained Earnings Date Debit Account Credit Dec. 31 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 . 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: Total Paid-In Capital Total Total Stockholders' Equity 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 (550,000 shares authorized, 360,000 shares issued) $3,600,000 Paid-In Capital in Excess of Stated Value-Common Stock 700,000 Retained Earnings 8,170,000 Treasury Stock (36,000 shares, at cost) 540,000 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 $48,600. Apr. 10. Issued 70,000 shares of common stock for $1,260,000. June 6. Sold all of the treasury stock for $18 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 23,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.18-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $8,497,000 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 3.600.000 n. 1 Bal. Apr 10 Aug.15 Dec 31 Bal 700,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 700,000 Apr. 10 July 5 Dec. 31 Bal. Retained Earnings Dec. 31 1 Bal. 8,170,000 Dec. 31 Dec. 31 Bal Treasury Stock 540,000 June 6 Jan. 1 Bal. Nov. 23 Dec. 31 Bal Paid-In Capital from Sale of Treasury Stock June 6 Stock Dividends Distributable Aug. 15 July 5 v Stock Dividends July 5 Dec. 31 Cash Dividends Dec. 28 Dec. 31 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 $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $48,600. Credit Date Account Debit Apr. 10. Issued 70,000 shares of common stock for $1,260,000. Credit Date Account Debit Apr. 10 June 6. Sold all of the treasury stock for $18 per share. Credit Date Account Debit 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 Aug. 15. Issued shares of stock for the dividend declared on July 5. Debit Credit Date Account Aug. 15 Nov. 23. Purchased 23,000 shares of treasury stock for $20 per share. Debit Date Account Credit Nov. 23 Dec. 28. Declared a $0.18-per-share dividend on common stock. Date Credit Account Debit Dec. 28 Dec. 31. Closed the credit balance of the income summary account, $8,497,000. Date Debit Account Credit Dec. 31 Dec. 31. Closed the two dividends accounts to Retained Earnings Date Debit Account Credit Dec. 31 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 . 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: Total Paid-In Capital Total Total Stockholders' Equity