Morrow Enterprises 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, $367,000$ shares issued$)$

Paid$-$In Capital in Excess of Stated Value$$Common Stock

Retained Earnings

Treasury Stock $(22,800$ shares, at cost$)$

The following selected transactions occurred during the year:

Jan. $22$ Paid cash dividends$$of $$0\mathrm{.}09$ per share on the common stock. The dividend had been properly recorded

when declared on December $1$ of the preceding fiscal year for $$30,978.$

Apr. $10$ Issued $71,000$ shares of common stock for $$23$ per share.

Jun. $6$ Sold all of the treasury stock$$for $$27$ per share.

Jul. $5$ Declared a $3\%$ Stock dividend$$on common stock, to be capitalized at the market price of the stock, which

is $$26$ per share.

Aug. $15$ Issued shares of stock for the stock dividend declared on July $5.$

Nov. $23$ Purchased $28,000$ shares of treasury stock for $$18$ per share.

Dec. $28$ Declared a $$0\mathrm{.}09-$per$-$share dividend on common stock.

$31$ Closed the two dividends accounts to Retained Earnings.

Required:

$1$ Journalize the entries to record the transactions, and post to the general ledger.

$2$ Post the Summary Journal that has been prepared to capture the transactions from the normal course of business in $20$Y$6.$

$3$ Complete the worksheet. Information for the adjusting entries are as follows:

a Payroll for the month of December in the amount of $$275,000$ will be paid on January $6.$

b The beginning balance of the prepaid insurance account was related to the annual liability policy that was purchased on

September $1,20$Y$5.$ Morrow Enterprises renewed the policy on September $1,20$Y$6$ for $$126,000.$

c Physical count of the office supplies shows an inventory of $$125,000.$

d The equipment has a $4$ year life, is being depreciated using the double declining balance method and was purchased on January $3,20$Y$5.$

e The note receivable was received from a customer that needed time to pay their balance. The $5\%$ note has a $5$ month term and was

received on October $1,20$Y$6.$

f The note payable was signed on December $31,20$y$5$ and has an interest rate of $1\%.$ Interest for $20$y$6$ will be paid in early January.

$4$ Journalize the adjusting entries and post them to the general ledger.

$5$ Prepare a multi$-$step income statement for the year ended December $31,20$Y$6.$

$6$ Prepare the statement of stockholders equity for the year ended December $31,20$Y$6.$

$7$ Prepare the balance sheet dated December $31,20$Y$6.$

$8$ Journalize and post the closing entries.

$9$ Prepare a post$-$closing trial balance.

CHART OF ACCOUNTS

Morrow Enterprises Inc.

General Ledger

ASSETS REVENUE

$110$ Cash $410$ Sales

$120$ Accounts Receivable $610$ Interest Revenue

$131$ Notes Receivable EXPENSES

$132$ Interest Receivable $510$ Cost of Goods Sold

$141$ Inventory $515$ Credit Card Expense

$145$ Office Supplies $520$ Salaries Expense

$151$ Prepaid Insurance $531$ Advertising Expense

$181$ Land $532$ Delivery Expense

$193$ Equipment $533$ Selling Expenses

$194$ Accumulated Depreciation$-$Equipment $534$ Rent Expense

$535$ Insurance Expense

LIABILITIES $536$ Office Supplies Expense

$210$ Accounts Payable $537$ Organizational Expenses

$221$ Notes Payable $562$ Depreciation Expense$-$Equipment

$226$ Interest Payable $590$ Miscellaneous Expense

$231$ Cash Dividends Payable $710$ Interest Expense

$241$ Salaries Payable

$261$ Mortgage Note Payable

EQUITY

$236$ Stock dividends Distributable

$311$ Common Stock

$313$ Paid$-$In Capital in Excess of Stated Value$-$Common Stock

$315$ Treasury Stock

$321$ Preferred Stock

$322$ Paid$-$In Capital in Excess of Par$-$Preferred Stock

$331$ Paid$-$In Capital from Sale of Treasury Stock

$340$ Retained Earnings

$351$ Cash Dividends

$352$ Stock dividends

GENERAL LEDGER CURRENT ACCOUNT BALLANCES. NOT MENTIONED ACCCOUNTS DONT HAVE A BALLANCE YET AND MAYE HAVE ONE AFTER ADJUSTMENT ENTRIES IN REQUIRMENT $3$ PARTS A$,$B$,$C$,$D$,$E$,$ AND F

Cash Debit $37,954,728\mathrm{.}00$

Accounts receivable debit $160,000\mathrm{.}00$

Inventory Debit $2,245,000\mathrm{.}00$

Office Supplise Debit $96,250\mathrm{.}00$

Prepaid insurance. Debit $76,000\mathrm{.}00$

Land Bebit $8,568,500\mathrm{.}00$

Equipment Debit $1,500,000$

Accumulated Depreciation, Equipment credit $750,000\mathrm{.}00$

Accounts payable Credit $135,000$

Notes payable credit $1,000,000$

Cash Dividends Payable credit $30,978\mathrm{.}00$

Mortgage Notes Payable Credit $7,500,000$

common stock credit $$7,340,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock credit $844,100\mathrm{.}00$

Treasury Stock debit $387,600\mathrm{.}00$

retained earnings credit $33,388,000\mathrm{.}00$