Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 2076, are as follows: Common stock, $20 stated value (500,000 shares authorized, 367,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (22,800 shares, at cost) $7,340,000 844,100 33,388,000 387,600 The following selected transactions occurred during the year. Jan. Apr. 10 Jun. 6 Jul. 5 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. Issued 71,000 shares of common stock for $23 per share. Sold all of the treasury stock for $27 per share. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Issued the certificates for the dividend declared on July 5. Purchased 28,000 shares of treasury stock for $18 per share. Declared a $0.09-per-share dividend on common stock. Closed the credit balance of the income summary account, $1,131,500. Closed the two dividends accounts to Retained Earnings. Aug 15 Nov. 23 Dec. 28 31 31 Required: 1. Enter the January 1 balances in accounts for the stockholders' equity accounts listed. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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 Morrow Enterprises Inc. General Ledger REVENUE 410 Sales 610 Interest Revenue 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 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 LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 710 Interest Expense 241 Salaries Payable 261 Mortgage Note Payable EQUITY 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 390 Income Summary Amount Descriptions Cash balance, July 31, 2016 Cash dividends Change in retained earnings Common stock, $20 stated value (500,000 shares authorized, 367,000 shares issued) Common stock, $20 stated value (500,000 shares authorized, 423, 140 shares issued) Common stock, $20 stated value (500,000 shares authorized, 451,140 shares issued) Excess of issue price over stated value For the Year Ended December 31, 2046 From sale of treasury stock Net income Net loss Retained earnings Retained earnings, December 31, 2046 Retained earnings, January 1, 2046 Stock dividends Total Total paid-in capital Total stockholders' equity Treasury stock (28,000 shares at cost) 1. Enter the January 1 balances in Taccounts for the stockholders' equity accounts listed. Post the journal entries from part 2 to the eight selected accounts. Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings 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. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. Journal JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 7 10 11 12 13 14 15 16 17 18 19 20 21 22 3. Prepare a retained earnings statement for the year ended December 31, 20Y6 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. Morrow Enterprises Retained Earnings Statement For the Year Ended December 31, 2046 1 2 3 4 5 Stockholders' Equity 4. Prepare the Stockholders' Equity section of the December 31, 2016 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. Stockholders' Equity 1 Paid-in capital: 2 3 5 6 7 00 9