Instructions Morrow Enterprises Inc, manufactures bathroom fixtures. The stockholders equity accounts of Morrow Enterprises Inc., with balances on January 1, 2045, are as follows: $7,380,000 Common stock, $20 stated value (500,000 shares authorized, 369,000 shares issued) Paid-in Capital in Excess of Stated Value Common Stock Retained Earnings Treasury Stock (23,300 shares, at a cost of $18 per share) 848,700 33,497.000 419.400 The following selected transactions occurred during the year: Jan 22 Apr 10 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 $27,656. Issued 72,000 shares of common stock for $24 per share. Sold all of the treasury stock for $26 per share. Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Jun 6 Jul 5 Aug 15 Issued the certificates for the dividend declared on July 5. Instructions Chart of Accounts Labels and Amount Descriptions nstructions Common stock, $20 stated value (500,000 shares authorized, 369,000 shares issued) $7,380,000 Paid-In Capital in Excess of Stated ValueCommon Stock 848,700 Retained Earnings 33,497,000 Treasury Stock (23,300 shares, at a cost of $18 per share) 419,400 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 $27,656. Apr. 10 Issued 72,000 shares of common stock for $24 per share. Jun. 6 Sold all of the treasury stock for $26 per share. Jul. 5 Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Aug. 15 Issued the certificates for the dividend declared on July 5. Nov. 23 Purchased 30,000 shares of treasury stock for $20 per share. Dec. 28 Declared a $0.12-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings. Dec. 28 Declared a $0.12-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings. Required: a. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-in Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. b. Journalize the entries to record the transactions and post to the eight selected accounts. No post ref is required in the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar. C. Prepare a retained earnings statement for the year ended December 31, 2015. Assume that Morrow Enterprises had net income for the year ended December 31, 2045, of $1,090,000. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount. d. Prepare the Stockholders' Equity section of the December 31, 2045, balance sheet. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. a. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. Also prepare Taccounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends, Cash Dividends. No post ref is required in the journal. Common Stock Jan. 1 Bal. 7,380,000 Apr. 10 1,440,000 Aug. 15 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Descriptions TAccounts Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings T Accounts Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable - TAccounts Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends Journal x b. Journalize the entries to record the transactions. No post ref is required in the journal. Refer to the chart of accounts for the exact wording of the ac journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically inde a credit amount is entered. Round your final answer to the nearest dollar. JOURNAL ACCOUN DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS 1 I 2. 3 4 5 6 Retained Earnings Statement c. Prepare a retained earnings statement for the year ended December 31, 2045. Assume that Morrow Enterprises had net income for ended December 31, 2045, of $1,090,000. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of La Amount Descriptions for the exact wording of text entries. A decrease to retained earnings should be entered as a negative amount. Morrow Enterprises Retained Earnings Statement (Label) 1 2. 3 Dividends: 4 5 6 7 7 Stockholders' Equity d. Prepare the Stockholders' Equity section of the December 31, 2045, balance sheet. Refer to the chart of accounts and the lists of Labels and Amount Descriptions for the exact wording of text entries. For those boxes in which you must enter subtractive or negative numbers, use a minus sign. Stockholders' Equity 1 Paid-in capital: 2 3 3 4. 5 6 7 8 9