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, 367,000 shares issued) $7,340,000 Paid In Capital in Excess of Stated ValueCommon Stock 844,100 Retained Earnings 33,388,000 Treasury Stock (22,800 shares, at cost) 387,600 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 $30,978 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 the certificates for the dividend declared on July 5 Nov 23 Purchased 28,000 shares of treasury stock for $18 per share Dec 28 Declared a $0 09 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 $1,131,500 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 $1,131,500 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, 451,140 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 (28,000 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 Paid In Capital in Excess of Stated Value Common Stock Jan 1 Bal Retained Earnings Jan 1 Bal Jan 1 Bal Treasury Stock Jan 1 Bal Jan 1 Bal Paid In Capital from Sale of Treasury Stock Stock dividends Distributable Jan 1 Bal Stock dividends Cash Dividends Dec 31 Bal Dec 31 Journal 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 $1,131,500 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 PAGE 10 JOURNAL ACCOUNTING EQUATION

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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, 367,000 shares issued)	$7,340,000
Paid-In Capital in Excess of Stated ValueCommon Stock	844,100
Retained Earnings	33,388,000
Treasury Stock (22,800 shares, at cost)	387,600

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 $30,978.
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 the certificates for the dividend declared on July 5.
Nov.	23	Purchased 28,000 shares of treasury stock for $18 per share.
Dec.	28	Declared a $0.09-per-share dividend on common stock.
	31	Closed the two dividends accounts to Retained Earnings.

Required:

Enter the January 1 balances in T accounts for the stockholders equity accounts listed. If required, round your answers to the nearest dollar.

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 $1,131,500 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.

Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was $1,131,500 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".*

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, 451,140 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 (28,000 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.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.

Retained Earnings
Jan. 1 Bal.		Jan. 1 Bal.

Treasury Stock
Jan. 1 Bal.		Jan. 1 Bal.

Paid-In Capital from Sale of Treasury Stock

Stock dividends Distributable
Jan. 1 Bal.

Stock dividends

Cash Dividends
Dec. 31 Bal.		Dec. 31

Journal

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 $1,131,500 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.

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JOURNAL

ACCOUNTING EQUATION