Morrow enterprisee inc. manufactures bathroom fixtures. Morrow enterprises stockholders equity accounts, with balances on January $1,20$Y$6,$ are as follows:

Common stock, $$20$ stated value $(500,000$ shares authorized, $363,000$ shares issues$)$ $$7,260,000$

Paid$-$in capital in excess of stated value$-$common stock $834,900$

Retained earnings $32,541,000$

Treasury stock $(25,900$ shares, at cost$)492,100$

Instructions

$1.$ 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 $$1,218,500$ to the retained earnings account.

$3.$ Prepare a statement of stockholders' equity for the year ended December $31,20$Y$6.$ Assume that net income was $$1,218,500$ for the year ended December $31,20$Y$6.$

$4.$ Prepare the "Stockholders' Equity" secrion of rhe December $31,20$Y$6,$ balance sheet.