Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January $1,20$Y$5,$ are as follows:

Common Stock, $$10$ stated value $(700,000$ shares authorized, $460,000$ shares issued$)$ $$4,600,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock $850,000$

Retained Earnings $10,440,000$

Treasury Stock $(46,000$ shares, at a cost of $$15$ per share$)690,000$

The following selected transactions occurred during the year:

Jan. $22.$ Paid cash dividends of $$0\mathrm{.}14$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$57,960.$

Apr. $10.$ Issued $85,000$ shares of common stock for $$18$ per share.

June $6.$ Sold all of the treasury stock for $$828,000.$

July $5.$ Declared a $5\%$ stock dividend on common stock, to be capitalized at the market price of the stock, which is $$20$ per share.

Aug. $15.$ Issued the certificates for the dividend declared on July $5.$

Nov. $23.$ Purchased $29,000$ shares of treasury stock for $$580,000.$

Dec. $28.$ Declared a $$0\mathrm{.}17-$per$-$share dividend on common stock.

$31.$ Closed the two dividends accounts to Retained Earnings.

Required:

$1.$ The January $1$ balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December $31$ balance where appropriate.

Common Stock

Jan. $1$ Bal. $4,600,000$

fill in the blank $2$

fill in the blank $4$

Dec. $31$ Bal. fill in the blank $5$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock

Jan. $1$ Bal. $850,000$

fill in the blank $7$

fill in the blank $9$

Dec. $31$ Bal. fill in the blank $10$

Retained Earnings

fill in the blank $12$ Jan. $1$ Bal. $10,440,000$

fill in the blank $14$

Dec. $31$ Bal. fill in the blank $15$

Treasury Stock

Jan. $1$ Bal. $690,000$

fill in the blank $17$

fill in the blank $19$

Dec. $31$ Bal. fill in the blank $20$

Paid$-$In Capital from Sale of Treasury Stock

fill in the blank $22$

Stock Dividends Distributable

fill in the blank $24$

fill in the blank $26$

Stock Dividends

fill in the blank $28$

fill in the blank $30$

Cash Dividends

fill in the blank $32$

fill in the blank $34$

$2.$ Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank.

Jan. $22.$ Paid cash dividends of $$0\mathrm{.}14$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$57,960.$

Date Account Debit Credit

Jan. $22$

fill in the blank $36$ fill in the blank $37$

fill in the blank $39$ fill in the blank $40$

Apr. $10.$ Issued $85,000$ shares of common stock for $$18.$

Date Account Debit Credit

Apr. $10$

fill in the blank $42$ fill in the blank $43$

fill in the blank $45$ fill in the blank $46$

fill in the blank $48$ fill in the blank $49$

June $6.$ Sold all of the treasury stock for $$828,000.$

Date Account Debit Credit

June $6$

fill in the blank $51$ fill in the blank $52$

fill in the blank $54$ fill in the blank $55$

fill in the blank $57$ fill in the blank $58$

July $5.$ Declared a $5\%$ stock dividend on common stock, to be capitalized at the market price of the stock, which is $$20$ per share.

Date Account Debit Credit

July $5$

fill in the blank $60$ fill in the blank $61$

fill in the blank $63$ fill in the blank $64$

fill in the blank $66$ fill in the blank $67$

Aug. $15.$ Issued the certificates for the dividend declared on July $5.$

Date Account Debit Credit

Aug. $15$

fill in the blank $69$ fill in the blank $70$

fill in the blank $72$ fill in the blank $73$

Nov. $23.$ Purchased $29,000$ shares of treasury stock for $$580,000.$

Date Account Debit Credit

Nov. $23$

fill in the blank $75$ fill in the blank $76$

fill in the blank $78$ fill in the blank $79$

Dec. $28.$ Declared a $$0\mathrm{.}17-$per$-$share dividend on common stock.

Date Account Debit Credit

Dec. $28$

fill in the blank $81$ fill in the blank $82$

fill in the blank $84$ fill in the blank $85$

Dec. $31.$ Closed the two dividends accounts to Retained Earnings.

Date Account Debit Credit

Dec. $31$

fill in the blank $87$ fill in the blank $88$

fill in the blank $90$ fill in the blank $91$

fill in the blank $93$ fill in the blank $94$

$3.$ Prepare a retained earnings statement for the year ended December $31,20$Y$5.$ Assume that Morrow Enterprises Inc. had net income for the year ended December $31,20$Y$5,$ of $$10,858,000.$

Morrow Enterprises Inc.

Retained Earnings Statement

For the Year Ended December $31,20$Y$5$

$fill in the blank $96$

$fill in the blank $98$

Dividends:

fill in the blank $100$

fill in the blank $102$

fill in the blank $104$

$fill in the blank $106$

$4.$ Prepare the Stockholders' Equity section of the December $31,20$Y$5,$ balance sheet.

Morrow Enterprises Inc.

Stockholders' Equity

As of December $31,20$Y$5$

Paid$-$In$-$Capital:

$fill in the blank $108$

fill in the blank $110$

$fill in the blank $112$

fill in the blank $114$

Total Paid$-$In Capital $fill in the blank $115$

fill in the blank $117$