Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows:

Common Stock, $10 stated value (450,000 shares authorized, 300,000 shares issued) $3,000,000

Paid-In Capital in Excess of Stated Value-Common Stock 550,000

Retained Earnings 6,810,000

Treasury Stock (30,000 shares, at cost) 450,000

The following selected transactions occurred during the year:

Jan. 22. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $40,500.

Apr. 10. Issued 55,000 shares of common stock for $990,000.

June 6. Sold all of the treasury stock for $540,000.

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 19,000 shares of treasury stock for $380,000.

Dec. 28. Declared a $0.18-per-share dividend on common stock.

Dec. 31. Closed the credit balance of the income summary account, $7,082,000.

Dec. 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.

2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.