PR 12-4A Entries for selected corporate transactions Obj. 2, 3, 4, 6 Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows EXCEL TEMPLATE GENERAL LEDGER Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (25.000 shares,at cost) $ 7,500,000 825,000 33,600,000 450,000 The following selected transactions occurred during the year Jan. 22. Paid cash dividends of $0.08 per share on the common stock The: divicd ten propxrly rexorded daio December 1 of the preceding fiscal year for $28,000. Apr. 10. Issued 75,000 shares of common stock for $24 per share. une 6. Sold all of the treasury stock for $26 per share. July 5, Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share Issued shares of stock for the stock dividend declared on July 5. Aug. 15. Nov. 23. Purchased 30,000 shares of treasury stock for $19 per share. Declared a $0.10-per-share dividend on common stock. Closed the credit balance of the income summary account, $1,125,000. Closed the two dividends accounts to Retained Earnings. Dec. 28. 31. 31. Instructions 1 Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock, Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. 4. Prepare the Stockholders' Equity section of the December 31, 20Y6, balance sheet. Answer Check Figure: Total stockholders' equity, $44,436,200