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

Common stock, $$20$ stated value $(500,000$ shares authorized, $383,000$ shares issued$)$ $$7,660,000$

Paid$-$In Capital in Excess of Stated Value$$Common Stock $957,500$

Retained Earnings $35,012,000$

Treasury Stock $(25,700$ shares, at cost$)462,600$

The following selected transactions occurred during the year:

Jan. $22$ Paid cash dividends of $$0\mathrm{.}06$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$21,438.$

Apr. $10$ Issued $77,000$ 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 the certificates for the dividend declared on July $5.$

Nov. $23$ Purchased $33,000$ shares of treasury stock for $$20$ per share.

Dec. $28$ Declared a $$0\mathrm{.}08-$per$-$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 $$1,196,500$ 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$$ equity for the year ended December $31,20$Y$6.$ Assume that net income was $$1,196,500$ for the year ended December $31,20$Y$6.$ 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 $31,20$Y$6,$ 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.

$1.$ 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. Correct

Apr. $10$ Correct

Aug. $15$ Correct

Dec. $31$ Bal. Correct

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

Jan. $1$ Bal. Correct

Apr. $10$ Correct

Jul. $5$ Correct

Dec. $31$ Bal. Correct

Retained Earnings

Dec. $31$ Correct Jan. $1$ Bal. Correct

Dec. $31$ Correct

Dec. $31$ Bal. Correct

Treasury Stock

Jan. $1$ Bal. Correct Jun. $6$ Correct

Nov. $23$ Correct

Dec. $31$ Bal. Correct

Paid$-$In Capital from Sale of Treasury Stock

Jun. $6$ Correct

Stock dividends Distributable

Aug. $15$ Correct Jul. $5$ Correct

Stock dividends

Jul. $5$ Correct Dec. $31$ Correct

Cash Dividends

Dec. $28$ Correct Dec. $31$ Correct

$2.$ 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 $$1,196,500$ 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.

Question not attempted.

PAGE $10$

JOURNALACCOUNTING EQUATION

Score: $0/249$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

$19$

$20$

$3.$ Prepare a statement of stockholders$$ equity for the year ended December $31,20$Y$6.$ Assume that net income was $$1,196,500$ for the year ended December $31,20$Y$6.$ 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.

Question not attempted.

Score: $0/174$

Morrow Enterprises Inc.

Statement of Stockholders$$ Equity

For the Year Ended December $31,20$Y$6$

$1$

Common Stock

Paid$-$In Capital in Excess of Stated Value

Paid$-$In Capital from Sale of Treasury Stock

Retained Earnings

Treasury Stock

Total

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$4.$ Prepare the $$Stockholders$$ Equity$$ section of the December $31,20$Y$6$ 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.

Question not attempted.

Score: $0/79$

Morrow Enterprises Inc.

Balance Sheet

December $31,20$Y$6$

$1$

Stockholders' Equity

$2$

Paid$-$in capital: