intries for Selected Corporate Transactions lorrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on anuary 1,20Y5, are as follows: he following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on Decem of the preceding fiscal year for $63,000. Apr. 10. Issued 95,000 shares of common stock for $1,710,000. June 6. Sold all of the treasury stock for $900,000. July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 31,000 shares of treasury stock for $620,000. Dec. 28. Declared a \$0.17-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: The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T ccounts and provide the December 31 balance where appropriate. Paid-In Capital in Excess of Stated Value-Common Stock \begin{tabular}{l|l|} \hline & Jan. 1 Bal. \\ \hline & Dec. 31 Bal. \\ \hline \end{tabular} Retained Earnings \begin{tabular}{l|l|l|} \hline & Jan. 1 Bal. \\ \hline & Dec. 31 Bal. \\ \hline \end{tabular} Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends 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 $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $63,000. Apr. 10. Issued 95,000 shares of common stock for $1,710,000. June 6. Sold all of the treasury stock for $900,000. July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per sh 1 Aug. 15. Issued the certificates for the dividend declared on July 5. Nov. 23. Purchased 31,000 shares of treasury stock for $620,000. Dec. 28. Declared a $0.17-per-share dividend on common stock. Dec. 31. Closed the credit balance of the income summary account, $11,804,000. Dec. 31. Closed the two dividends accounts to Retained Earnings. 3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31,20Y5, of $11,804,000. 4. Prepare the Stockholders' Equity section of the December 31,20Y, balance sheet
