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, $20 stated value (500,000 shares authorized, 399,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (22,500 shares, at a cost of $17 per share) The following selected transactions occurred during the year: Jan. Apr. Jun. Jul. Aug. Nov. Dec. 22 Paid cash dividends of $0.07 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $26,355. Issued 73,000 shares of common stock for $23 per share. Sold all of the treasury stock for $26 per share. Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $24 per share. Issued the certificates for the dividend declared on July 5. 23 Purchased 30,000 shares of treasury stock for $20 per share. Declared a $0.09-per-share dividend on common stock. Closed the two dividends accounts to Retained Earnings 10 6 5 15 28 $7,980,000 877,800 31 34,554,000 382,500

Morrow Enterprises Inc, manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc, with balances on January 1, 20Y5, are as follows: Divdends Distributable; 5tock Dividendsi Cash Dividends. No post ret is required in the journal b. Joumaise the entries to record the transactions. No past ref is requined in the joumal. Reter to the chart of accounts for the exact wording of the accourt niles. CNOW/ journals do not us your final answer to the neavest dollar. shorid be entered as a negavve amount. d. Prepare the Stockholders' Equity section of the December 31,20Y5, balance sheet. Aefor to the chart of accounts and the Asts of Labeis and Amount Deserpions for the exact wording of terf entries. For those boxes in which you must enter suberactive or negasve numbers, use a minus sipn