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, 363,000 shares issued)	$7,260,000
Paid-In Capital in Excess of Stated ValueCommon Stock	834,900
Retained Earnings	32,541,000
Treasury Stock (25,900 shares, at cost)	492,100

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 $30,339.
Apr.	10	Issued 80,000 shares of common stock for $23 per share.
Jun.	6	Sold all of the treasury stock for $25 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 $19 per share.
Dec.	28	Declared a $0.10-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 $1,218,500 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 $1,218,500 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

Amount Descriptions
Balances, January 1
Balances, December 31
Cash dividends
Common stock, $20 stated value (500,000 shares authorized, 456,290 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 (33,000 shares at cost)

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 $1,218,500 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 JOURNAL Score: 0/249 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 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 $1,218,500 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 JOURNAL Score: 0/249 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20