Instructions Monrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 2010, are as follows Paid-in Capital in Excess of Stated Value-Common Stock Common Stock $20 stated value (500.000 shares authorized. 375,000 shares issued $7,500,000 25.000 33.000000 450,000 Retained Earnings Treasury Stock (25,000 shares, at cost) The following selected transactions occurred during the year 22 Paid cash dividends of $0.08 per share on the gomat Apr 10 Jun 30 15 The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $2.000 Issued 75.000 shares of common stock for $24 per share. Sold all of the testock for $20 per share Declared a 4% Stock dividend en common stock, to be captalized at the market price of the stock which is $25 per share Issued shares of stock for the Stock dividend declared on July Aug 15 Nov 23 Purchased 30,000 shares of treasury stock for 519 per share Dec 20 Declared a $0.10-pershare dividend on common stook 31 Closed the two dividends accounts to Retained Emings Required 1. Enter the January 1 belances in Taccounts for the stockholder equity accounts lated 2. Joumalize the entries to record the transactions, and post to the eight selected accounts Assume that the cloang entry for revenues and spensee has been made and post net income of $1,125,000 to the retained eaminge account 3. Prepare a latement of stockholders' equity for the year ended December 31, 2018 Assume that net income $1,125 000 for the year ended December 31, 201 4. Prepare the Stockholders Equity section of the December 31, 2016 balance sheet CHART OF ACCOUNTS Morrow Enterprises Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 193 Equipment 532 Delivery Expense 194 Accumulated Depreciation-Equipment 533 Selling Expenses 534 Rent Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable 535 Insurance Expense 538 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 500 Miscellaneous Expense 710 Interest Expense EQUITY 236 Stock dividends Distributable 311 Common Stock 313 Paid-In Capital in Excess of Stated Value-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends Labels and Amount Descriptions Labels December 31, 20Y6 For the Year Ended December 31, 20Y6 Amount Descriptions Balances, January 1 Balances, December 31 Cash dividends Common stock, $20 stated value (500,000 shares authorized. 468.000 shares issued) Excess of issue price over stated value From sale of treasury stock Issued common stock Net income Net loss Purchase of treasury stock Sale of treasury stock Stock dividends Retained Earnings Total Total paid-in capital Total stockholders' equity Treasury stock (30,000 shares at cost) 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed Post the joumal entries from part 2 to the eight selected accounts Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock dividends Distributable Stock dividends Cash Dividends 2. Joumalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RET DET CREDIT ASSETS LIABLITICS EQUITY General Joumal Instructions 20 # 14 35252 2. Prepare a statement of stockholders' equity for the year ended December 31, 2016. Assume that net income as $1.125,000 for the year ended December 31, 2016 ed ear Morrow Enterprises inc Statement of Stockholders Equity Labe C Exos of Sed Paid-in Capital Retted Sale of Seeory Sex Total Earnings 4. Prepare the "Stockholders' Equity section of the December 31, 20Y6, balance sheet. Stockholders' Equity Instructions 1 Stockholders' Equity 2 Paid-in capital: 3 7 5 9 8 6 40 Morrow Enterprises Inc. Balance Sheet (Label)