Instructions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,000 shares, at cost) $ 7,500,000 825,000 33,600,000 450,000 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $28,000. Issued 75,000 shares of common stock for $24 per share. Apr. 10 Jun. 6 Sold all of the treasury stock for $26 per share. Jul. 5 Declared a 4% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Aug. 15 Issued shares of stock for the Stock dividend declared on July 5. Nov. 23 Purchased 30,000 shares of treasury stock for $19 per share. Dec 28 Declared a $0 10-per-share dividend on common stock Dec. 28 Declared a $0.10-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings. Required: 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. 2. Journalize 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 $1,125,000 to the retained earnings account. Refer to the Chart of Accounts for exact wording of account titles. 3. Prepare a Prepare a statement of stockholders' equity for the year ended December 31, 20Y6. Assume that net income was $1,125,000 for the year ended December 31, 20Y6. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter "0".* 4. Prepare the "Stockholders' Equity" section of the December 31, 20Y6, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Instructions Chart of Accounts Amount Descriptions !T Accounts ! Journal ! Statement of Stockholders' Equity Stockholders' Equity 2 Balances, January 1 3 issued common stock 4 net income 5 cash dividends 6 stock dividends 7 Sale of treasury stock 8 Purchase of treasury stock 9 Balances, December 31 Morrow Enterprises Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y6 ^ Score: 124/174 Paid-In Capital in Common Stock Excess of Stated Value Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total $7,500,000.00 $825,000.00 $33,600,000.00 1,125,000.00 (43,800.00) (450,000.00) 200,000.00 1,125,000.00 (43,800.00) (570,000.00) (570,000.00) $9,360,000.00 $1,215,000.00 $200,000.00 $34,231,200.00