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, $$10$ stated value $(650,000$ shares authorized, $420,000$ shares issued$)$ $$4,200,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock $800,000$

Retained Earnings $9,530,000$

Treasury Stock $(42,000$ shares, at a cost of $$15$ per share$)630,000$

The following selected transactions occurred during the year:

Jan. $22.$ Paid cash dividends of $$0\mathrm{.}12$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$45,360.$

Apr. $10.$ Issued $80,000$ shares of common stock for $$18$ per share.

June $6.$ Sold all of the treasury stock for $$756,000.$

July $5.$ Declared a $4\%$ 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 $26,000$ shares of treasury stock for $$520,000.$

Dec. $28.$ Declared a $$0\mathrm{.}15-$per$-$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. $4,200,000$

Apr. $10$

fill in the blank $2$

$800,000$

Aug. $15$

fill in the blank $4$

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

$5,640,000$

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

Jan. $1$ Bal. $800,000$

Apr. $10$

fill in the blank $7$

$1,440,000$

July $5$

fill in the blank $9$

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

Retained Earnings

Dec. $31$

fill in the blank $12$

Jan. $1$ Bal. $9,530,000$

Dec. $31$

fill in the blank $14$

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

Treasury Stock

Jan. $1$ Bal. $630,000$

June $6$

fill in the blank $17$

Nov. $23$

fill in the blank $19$

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

Paid$-$In Capital from Sale of Treasury Stock

June $6$

fill in the blank $22$

Stock Dividends Distributable

Aug. $15$

fill in the blank $24$

July $5$

fill in the blank $26$

Stock Dividends

July $5$

fill in the blank $28$

Dec. $31$

fill in the blank $30$

Cash Dividends

Dec. $28$

fill in the blank $32$

Dec. $31$

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 $$0\mathrm{.}12$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$45,360.$

Date Account Debit Credit

Jan. $22$

Cash Dividends Payable

fill in the blank $36$

fill in the blank $37$

Cash

fill in the blank $39$

fill in the blank $40$

Apr. $10.$ Issued $80,000$ shares of common stock for $$18.$

Date Account Debit Credit

Apr. $10$

Cash

fill in the blank $42$

fill in the blank $43$

Common Stock

fill in the blank $45$

fill in the blank $46$

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

fill in the blank $48$

fill in the blank $49$

June $6.$ Sold all of the treasury stock for $$756,000.$

Date Account Debit Credit

June $6$

Cash

fill in the blank $51$

fill in the blank $52$

Treasury Stock

fill in the blank $54$

fill in the blank $55$

Paid$-$In Capital from Sale of Treasury Stock

fill in the blank $57$

fill in the blank $58$

July $5.$ Declared a $4\%$ 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 $5$

Stock Dividends

fill in the blank $60$

fill in the blank $61$

Stock Dividends Distributable

fill in the blank $63$

fill in the blank $64$

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

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. $15$

Stock Dividends Distributable

fill in the blank $69$

fill in the blank $70$

Common Stock

fill in the blank $72$

fill in the blank $73$

Nov. $23.$ Purchased $26,000$ shares of treasury stock for $$520,000.$

Date Account Debit Credit

Nov. $23$

Treasury Stock

fill in the blank $75$

fill in the blank $76$

Cash

fill in the blank $78$

fill in the blank $79$

Dec. $28.$ Declared a $$0\mathrm{.}15-$per$-$share dividend on common stock.

Date Account Debit Credit

Dec. $28$

Cash Dividends

fill in the blank $81$

fill in the blank $82$

Cash Dividends Payable

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. $31$

Retained Earnings

fill in the blank $87$

fill in the blank $88$

Stock Dividends

fill in the blank $90$

fill in the blank $91$

Cash Dividends

fill in the blank $93$

fill in the blank $94$

$3.$ Prepare a retained earnings statement