Reference no: EM132463866

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises' stockholders' equity accounts, with balances on January 1, 20Y6, are as follows:

Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued) $ 7,500,000

Paid-In Capital in Excess of Stated Value-Common Stock                                            825,000

Retained Earnings                                                                                            33,600,000

Treasury Stock (25,000 shares, at cost)                                                                 450,000

The following selected transactions occurred during the year:

Point 1: Jan.22 - Paid cash dividends of $0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $28,000.

Point 2: Apr.10 - Issued 75,000 shares of common stock for $24 per share.

Point 3: Jun.6 - Sold all of the treasury stock for $26 per share.

Point 4: Jul.5 - Declared a 4% Stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.

Point 5: Aug.15 - Issued shares of stock for the Stock dividend declared on July 5.

Point 6: Nov.23 - Purchased 30,000 shares of treasury stock for $19 per share.

Point 7: Dec.28 - Declared a $0.10-per-share dividend on common stock.

Point 8: 31 - Closed the two dividends accounts to Retained Earnings.

QUESTION:

Question 1: Prepare a statement of stockholders' equity for the year ended December 31, 20Y6. Assume that net income was $1,125,000 for the year ended December 31, 20Y6. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is an amount is zero, enter "0".