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 (750,000 shares authorized, 500,000 shares issued) $5,000,000 Paid-In Capital in Excess of Stated Value-Common Stock 950,000 Retained Earnings 11,350,000 Treasury Stock (50,000 shares, at cost) 700,000 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 $54,000. Apr. 10. Issued 95,000 shares of common stock for $1,710,000. June 6. Sold all of the treasury stock for $17 per share. July 5. Declared a 4% 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 31,000 shares of treasury stock for $19 per share. Dec. 28. Declared a $0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, $11,804,000. 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 Jan. 1 Bal. 5,000,000 Apr. 10 950,000 Aug. 15 238,000 Dec. 31 Bal. 6,188,000 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 950,000 Apr. 10 July 5 Dec. 31 Bal. Retained Earnings Dec. 31 Jan. 1 Bal. 11,350,000 Dec. 31 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. 700,000 June 6 700,000 Nov. 23 589,000 Dec. 31 Bal. 589,000 Paid-In Capital from Sale of Treasury Stock June 6 Stock Dividends Distributable Aug. 15 July 5 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 $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $54,000. Date Account Debit Credit Jan. 22 Cash Dividends Payable 54,000 Cash 54,000 Apr. 10. Issued 95,000 shares of common stock for $1,710,000. Date Account Debit Credit Apr. 10 Cash 1,710,000 Common Stock 950,000 Paid-In Capital in Excess of Stated Value-Common Stock 760,000 June 6. Sold all of the treasury stock for $17 per share. Date Account Debit Credit June 6 Cash 850,000 Treasury Stock 700,000 Paid-In Capital from Sale of Treasury Stock 150,000 July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Date Account Debit Credit July 5 Stock Dividends 476,000 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 Account Debit Credit Aug. 15 Stock Dividends Distributable Common Stock Nov. 23. Purchased 31,000 shares of treasury stock for $19 per share. Date Account Debit Credit Nov. 23 Treasury Stock 589,000 Cash 589,000 Dec. 28. Declared a $0.15-per-share dividend on common stock. Date Account Debit Credit Dec. 28 Cash Dividends Cash Dividends Payable Dec. 31. Closed the credit balance of the income summary account, $11,804,000. Date Account Debit Credit Dec. 31 Income Summary Retained Earnings Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 Retained Earnings 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 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. Morrow Enterprises Inc. Balance Sheet December 31, 20Y6 Stockholders' Equity Paid-In-Capital: Common Stock, $10 stated value (750,000 shares authorized, 618,800 shares issued) Excess of issue price over stated value From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (31,000 shares, at cost) Total Stockholders' Equity Feedback