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Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders$$ equity accounts of Morrow Enterprises Inc., with balances on January $1,20$Y$5,$ are as follows:

Common stock, $$20$ stated value $(500,000$ shares authorized, $399,000$ shares issued$)$ $$7,980,000$

Paid$-$In Capital in Excess of Stated Value$$Common Stock $877,800$

Retained Earnings $34,554,000$

Treasury Stock $(22,500$ shares, at a cost of $$17$ per share$)382,500$

The following selected transactions occurred during the year:

Jan. $22$ Paid cash dividends of $$0\mathrm{.}07$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$26,355.$

Apr. $10$ Issued $73,000$ shares of common stock for $$23$ per share.

Jun. $6$ Sold all of the treasury stock for $$26$ per share.

Jul. $5$ Declared a $2\%$ stock dividend on common stock, to be capitalized at the market price of the stock, which is $$24$ per share.

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

Nov. $23$ Purchased $30,000$ shares of treasury stock for $$20$ per share.

Dec. $28$ Declared a $$0\mathrm{.}09-$per$-$share dividend on common stock.

$31$ Closed the two dividends accounts to Retained Earnings. Labels

For the Year Ended December $31,20$Y$5$

December $31,20$Y$5$

Amount Descriptions

Cash balance, July $31,20$Y$5$

Cash dividends

Common stock, $$20$ stated value $(500,000$ shares authorized, $399,000$ shares issued$)$

Common stock, $$20$ stated value $(500,000$ shares authorized, $451,440$ shares issued$)$

Common stock, $$20$ stated value $(500,000$ shares authorized, $481,440$ shares issued$)$

Decrease in retained earnings

Excess over stated value

From sale of treasury stock

Increase in retained earnings

Net income

Net loss

Paid$-$in capital, common stock

Retained earnings

Retained earnings, December $31,20$Y$5$

Retained earnings, January $1,20$Y$5$

Stock dividends

Total

Total paid$-$in capital

Total stockholders$$ equity

Treasury stock

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