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Morrow Enterprises Ine. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common Stock,
Morrow Enterprises Ine. 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 (500,000 shares authorized, 320,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (32,000 shares, at cost) The following selected transactions occurred during the year: Jan. 22. Paid cash divilends of S0.12 per share on the common stock. The d S3,200,000 600,000 7,260,000 448,000 when declared on December I of the preceding fiscal year for $34,560. Apr. 10. Issued 60,000 shares of common stock for $1,0so.000. June 6. Sold all of the treasury stock for $544,00. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, whicl is $20 per share. July 5 Aug. Issued the certificates for the dividend declared on July S. 15. Nov. 23. Purchased 20,000 shares of treasury stock for S380,000. Dee. 28. Declared a S0.15-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, 57,550,000. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. Record the ahove transactions in the T accounts and provide the December 31 balance where appropriate 2. Journalize the entries to record the transactions. 3. Prepare a retained carnings statement for the year ended December 31, 20YS. Assume that Morrow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $7,550,000. 4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet
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