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 (650,000 shares authorized, 440,000 shares issued) $4,400,000 Paid-In Capital in Excess of Stated Value-Common Stock 850,000 Retained Earnings 9,990,000 Treasury Stock (44,000 shares, at cost) 660,000 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 $47,520. Apr. 10. Issued 85,000 shares of common stock for $1,360,000. 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 $18 per share. Aug. 15. Issued shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 28,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $10,390,000. 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.

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: Common Stock, $10 stated value (650,000 shares authorized, 551,250 shares issued) s5,512,500 V Excess of issue price over stated value From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (28,000 shares, at cost) 560,000 Total Stockholders' Equity Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Credit Account Debit Retained Earnings Dec. 31 Stock Dividends Cash Dividends 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 Net Income $ 10,390,000 Cash Dividends Stock Dividends Change in retained earnings Retained Earnings, December 31, 20Y6 4. Prepare the Stockholders' Equity section of the December 31, 20Y6, balance sheet. Nov. 23. Purchased 28,000 shares of treasury stock for $20 per share. Date Credit Account Debit Nov. 23 Treasury Stock 560,000 Cash 560,000 Dec. 28. Declared a $0.15-per-share dividend on common stock. Debit Credit Date Account Dec. 28 Cash Dividends Cash Dividends Payable Dec. 31. Closed the credit balance of the income summary account, $10,390,000 Date Debit Account Credit 10,390,000 Dec. 31 Income Summary Retained Earnings 10,390,000 Dec. 31. Closed the two dividends accounts to Retained Earnings. June 6. Sold all of the treasury stock for $18 per share. Debit Credit Date Account 792,000 V June 6 Cash Treasury Stock 660,000 132,000 Paid-In Capital from Sale of Treasury Stock 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. Date Account Debit Credit July 5 Stock Dividends 472,500 Stock Dividends Distributable Paid-In Capital in Excess of Stated Value-Common Stock Aug. 15. Issued shares of stock for the dividend declared on July 5. Date Credit Account Debit Stock Dividends Distributable Aug. 15 Common StockV Journalize the entries to record the transactions. For a compound transaction, i an amount box does hot require an entry, Teave it blank. 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 $47,520. Date Account Credit Debit Jan. 22 Cash Dividends Payable 47,520 V Cash 47,520 Apr. 10. Issued 85,000 shares of common stock for $1,360,000. Date Account Debit Credit 1,360,000 Apr. 10 Cash Common Stock 850,000 Paid-In Capital in Excess of Stated Value-Common Stock 510,000V Treasury Stock 660,000 June 6 660,000 an. 1 Bal Nov. 23 560,000V 560,000 ec. 31 Bal. Paid-In Capital from Sale of Treasury Stock June 6 132,000 Stock Dividends Distributable Aug. 15 uly 5 Stock Dividends Dec. 31 Cash Dividends Dec. 28 Dec. 31 V 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 Jan. 1 Bal 4,400,000 850,000 Apr. 10 Aug. 15 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock 850,000 Jan. 1 Bal. 510,000 Apr. 10 210,000 V July 5 1,570,000 Dec. 31 Bal. Retained Earnings Dec. 31 Jan. 1 Bal. 9,990,000 Dec. 31 10,390,000 V Dec. 31 Bal. Entries for Selected Corporate Transaction:s Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as fo Common Stock, $10 stated value (650,000 shares authorized, 440,000 shares issued) $4,400,000 Paid-In Capital in Excess of Stated Value-Common Stoclk 850,000 Retained Earnings 9,990,000 Treasury Stock (44,000 shares, at cost) 660,000 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 $47,520. Apr. 10. Issued 85,000 shares of common stock for $1,360,000. 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 $18 per share. Aug. 15. Issued shares of stock for the stock dividend declared on July 5 Nov. 23. Purchased 28,000 shares of treasury stock for $20 per share. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $10,390,000 31. Closed the two dividends accounts to Retained Earnings. Required