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 (750,000 shares authorized, 500,000 shares issued)	$5,000,000
Paid-In Capital in Excess of Stated Value-Common Stock	950,000
Retained Earnings	11,350,000
Treasury Stock (50,000 shares, at cost)	750,000

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 $67,500.
Apr. 10.	Issued 95,000 shares of common stock for $1,520,000.
June 6.	Sold all of the treasury stock for $900,000.
July 5.	Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
Aug. 15.	Issued the certificates for the dividend declared on July 5.
Nov. 23.	Purchased 31,000 shares of treasury stock for $620,000.
Dec. 28.	Declared a $0.18-per-share dividend on common stock.
31.	Closed the credit balance of the income summary account, $11,804,000.
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.	5,000,000
		Apr. 10	fill in the blank 2
		Aug. 15	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.	950,000
		Apr. 10	fill in the blank 7
		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.	11,350,000
			fill in the blank 14
		Dec. 31 Bal.	fill in the blank 15

Treasury Stock
Jan. 1 Bal.	750,000	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. For a compound transaction, if an amount box does not require an entry, leave it blank.

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 $67,500.

Date	Account	Debit	Credit
Jan. 22	Cash Dividends Payable	fill in the blank 36
	Cash		fill in the blank 38

Apr. 10. Issued 95,000 shares of common stock for $1,520,000.

Date	Account	Debit	Credit
Apr. 10	Cash	fill in the blank 40	fill in the blank 41
	Common Stock	fill in the blank 43	fill in the blank 44
	Paid-In Capital in Excess of Stated Value-Common Stock	fill in the blank 46	fill in the blank 47

June 6. Sold all of the treasury stock for $900,000.

Date	Account	Debit	Credit
June 6	Cash	fill in the blank 49	fill in the blank 50
	Treasury Stock	fill in the blank 52	fill in the blank 53
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 55	fill in the blank 56

July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.

Date	Account	Debit	Credit
July 5	Stock Dividends	fill in the blank 58	fill in the blank 59
	Stock Dividends Distributable	fill in the blank 61	fill in the blank 62
	Paid-In Capital in Excess of Stated Value-Common Stock	fill in the blank 64	fill in the blank 65

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

Date	Account	Debit	Credit
Aug. 15		fill in the blank 67
			fill in the blank 69

Nov. 23. Purchased 31,000 shares of treasury stock for $620,000.

Date	Account	Debit	Credit
Nov. 23		fill in the blank 71
			fill in the blank 73

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

Date	Account	Debit	Credit
Dec. 28		fill in the blank 75
			fill in the blank 77

Dec. 31. Closed the credit balance of the income summary account, $11,804,000.

Date	Account	Debit	Credit
Dec. 31		fill in the blank 79
			fill in the blank 81

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

Date	Account	Debit	Credit
Dec. 31		fill in the blank 83	fill in the blank 84
		fill in the blank 86	fill in the blank 87
		fill in the blank 89	fill in the blank 90

3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $11,804,000.

Morrow Enterprises Inc. Retained Earnings Statement For the Year Ended December 31, 20Y5
		fill in the blank 92
	fill in the blank 94
Dividends:
	fill in the blank 96
	fill in the blank 98
		fill in the blank 100
		$ fill in the blank 102

4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet.

Morrow Enterprises Inc. Stockholders' Equity As of December 31, 20Y5
Paid-In-Capital:
	fill in the blank 104
	fill in the blank 106
		fill in the blank 108
		fill in the blank 110
Total Paid-In Capital			fill in the blank 111
			fill in the blank 113
Total			fill in the blank 114
			fill in the blank 116
Total Stockholders' Equity			$ fill in the blank 117

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