Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2016, are as follows Common stock, $20 stated value (500,000 shares authorized, 353,000 shares issued) Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25,500 shares, at cost) $7,060,000 811,900 33,598,000 484,500 The following selected transactions occurred during the year. Jan. 22 Apr. 10 Jun. Jul. Paid cash dividends of $0.10 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,750. Issued 72,000 shares of common stock for $24 per share. 6 Sold all of the treasury stock for $25 per share. 5 Declared a 4% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. 15 Issued the certificates for the dividend declared on July 5. Purchased 25,000 shares of treasury stock for $19 per share. Declared a $0.09-per-share dividend on common stock. Closed the two dividends accounts to Retained Earnings. Aug. Nov. 23 Dec. 28 31 Required: 1. Enter the January 1 balances in Taccounts 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 $1,149,500 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 $1,149,500 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, 2076, 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 REVENUE 410 Sales 610 Interest Revenue 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 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 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 Amount Descriptions Amount Descriptions Balances, January 1 Balances, December 31 Cash dividends Common stock, $20 stated value (500,000 shares authorized, 442,000 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 (25,000 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 Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings v Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock dividends Distributable Stock dividends Cash Dividends 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 $1,149,500 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 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 Statement of Stockholders' Equity 3. Prepare a statement of stockholders' equity for the year ended December 31, 20Y6. Assume that net income was $1,149,500 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 "O". 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, 2016 Retained Common Stock Paid-In Capital in Excess of Stated Value Paid-In Capital from Sale of Treasury Stock Treasury Stock Total Earnings 2 3 4 5 6 7 8 9