Morrow Enterprises Inc. manufactures bathroom fixtures, Morrow Enterprises' stockholders' equity accounts, with balances on January 1,20Y6, are as follows. The fillowina selected transactions occurred during the year. Required: 1 Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. 2. Joumalize 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 incorne of $1,125,000 to the retained eamings account. 3. Prepare a statement of stockholders' equily for the year ended December 31, 20Y6. Assume that net income was $1,125,000 for the year ended December 31,20Y6. 4. Prepare the 'Stockholders' Equity' section of the December 31, 20Y6, balance sheet. December 31, 20Y6 For the Year Ended December 31, 20 Y6 Amount Descriptions Balances, January 1 Balances, December 31 Cash dividends Common stock, $20 stated value ( 500,000 shares authorized, 468,000 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 (30,000 shares at cost) 1. Enter the January 1 balances in T acoounts for the stockholders' equity accounts fisted Past the joumal entries from part 2 to the eight selected accounts. Retained Eamings \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Retained Eamings } \\ \hlinev & \\ \hline & \\ \hline & \\ \hline \end{tabular} Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock dividends Distributable Stock dividends Cash Dividends 4. Prepare the "Stockholders' Equity" section of the December 31, 20Y6, balance sheet. Stockholders' Equity Instructions