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Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: Common stock, $20 stated value

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows:

Common stock, $20 stated value (500,000 shares authorized, 363,000 shares issued) $7,260,000
Paid-In Capital in Excess of Stated ValueCommon Stock 834,900
Retained Earnings 32,541,000
Treasury Stock (25,900 shares, at cost) 492,100

The following selected transactions occurred during the year:

Jan. 22 Paid cash dividends of $0.09 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $30,339.
Apr. 10 Issued 80,000 shares of common stock for $23 per share.
Jun. 6 Sold all of the treasury stock for $25 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 the certificates for the dividend declared on July 5.
Nov. 23 Purchased 33,000 shares of treasury stock for $19 per share.
Dec. 28 Declared a $0.10-per-share dividend on common stock.
31 Closed the two dividends accounts to Retained Earnings.
Required:
1. Enter the January 1 balances in T accounts 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 $1,218,500 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.
3. Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was $1,218,500 for 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, 20Y6, 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.

Chart of Accounts

CHART OF ACCOUNTS
Morrow Enterprises Inc.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
193 Equipment
194 Accumulated Depreciation-Equipment
LIABILITIES
210 Accounts Payable
221 Notes Payable
226 Interest Payable
231 Cash Dividends Payable
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
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
515 Credit Card Expense
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Selling Expenses
534 Rent Expense
535 Insurance Expense
536 Office Supplies Expense
537 Organizational Expenses
562 Depreciation Expense-Equipment
590 Miscellaneous Expense
710 Interest Expense

Amount Descriptions

Amount Descriptions
Balances, January 1
Balances, December 31
Cash dividends
Common stock, $20 stated value (500,000 shares authorized, 456,290 shares issued)
Excess of issue price over stated value
From sale of treasury stock
Issued common stock
Net income
Net loss
Purchase of treasury stock
Sale of treasury stock
Stock dividends
Retained Earnings
Total
Total paid-in capital
Total stockholders equity
Treasury stock (33,000 shares at cost)

T Accounts

1. Enter the January 1 balances in T accounts 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.
Apr. 10
Aug. 15
Dec. 31 Bal.
Paid-In Capital in Excess of Stated Value-Common Stock
Jan. 1 Bal.
Apr. 10
Jul. 5
Dec. 31 Bal.
Retained Earnings
Dec. 31 Jan. 1 Bal.
Dec. 31
Dec. 31 Bal.
Treasury Stock
Jan. 1 Bal. Jun. 6
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
Cash Dividends
Dec. 28 Dec. 31

Statement of Stockholders Equity

3. Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was $1,218,500 for 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". Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

Morrow Enterprises Inc.

Statement of Stockholders Equity

For the Year Ended December 31, 20Y6

1

Common Stock

Paid-In Capital in Excess of Stated Value

Paid-In Capital from Sale of Treasury Stock

Retained Earnings

Treasury Stock

Total

2

3

4

5

6

7

8

9

Stockholders Equity

4. Prepare the Stockholders Equity section of the December 31, 20Y6 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.

Morrow Enterprises Inc.

Balance Sheet

December 31, 20Y6

1

Stockholders' Equity

2

Paid-in capital:

3

4

5

6

7

8

9

10

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