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 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 $0.09-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.
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.
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.
4.	Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.