Instructions Morrow Enterprises Inc. manufactures bathroom foxtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows: Common stock, $20 stated value (500,000 shares authorized, 399,000 shares issued) Paldin Capital in Excess of Stated Value --Common Stock Retained Earnings Treasury Stock (22,500 shares, at cost) $7,980,000 877,800 34,554,000 382,500 The following selected transactions occurred during the year: Jan. 22 10 6 5 Paid cash dividends of $0.07 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $26,355. Issued 73,000 shares of common stock for $23 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 $24 per share. Issued the certificates for the dividend declared on July 5. Purchased 30,000 shares of treasury stock for $20 per share. Declared a $0.09-per-share dividend on common stock, Closed the two dividends accounts to Retained Earning 15 23 28 31 Required: 1. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. If required, round your answers to the nearest dollar. 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 $1,162,500 to the retained earnings account. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. 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, 2016, 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. 1. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. Post the journal entries from part 2 to the eight selected accounts. If required, round your answers to the nearest dollar Common Stock Jan. 1 Bal. 7,980,000 Apr. 10 Aug. 15 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 8,778,000 Apr. 10 Jul. 5 Retained Earnings Dec. 31 Jan. 1 Bal. 34,554,000 Dec. 31 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. Jun. 6 382,500 Nov. 23 Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Jun. 6 Stock dividends Distributable Aug. 15 Jul. 5 Stock dividends Jul. 5 Dec. 31 Paid-In Capital from Sale of Treasury Stock Jun. 6 Stock dividends Distributable / Jul. 5 L Aug. 15 / / Stock dividends / / Dec. 31 Jul. 5 / / / / Cash Dividends Dec. 28 Dec. 31 /