Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity

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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, $20 stated value (500,000 shares authorized, 353,000 shares issued) $7,060,000Paid-In Capital in Excess of Stated Value—Common Stock 811,900Retained Earnings 33,598,000Treasury Stock (25,500 shares, at a cost of $19 per share) 484,500The following selected transactions occurred during the year:Jan. 22 Paid cash dividends of $0.10 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,750.Apr. 10 Issued 72,000 shares of common stock for $24 per share.Jun. 6 Sold all of the treasury stock for $25 per share.Jul. 5 Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share.Aug. 15 Issued the certificates for the dividend declared on July 5.Nov. 23 Purchased 25,000 shares of treasury stock for $19 per share.Dec. 28 Declared a $0.09-per-share dividend on common stock.31 Closed the two dividends accounts to Retained Earnings.Required:a. Enterthe January 1 balances in T accounts for the stockholders’ equityaccounts listed. Also prepare T accounts for the following: Paid-InCapital from Sale of Treasury Stock; Stock Dividends Distributable;Stock Dividends; Cash Dividends.b. Journalizethe entries to record the transactions and post to the eight selectedaccounts. No post ref is required in the journal. Refer to the chart ofaccounts for the exact wording of the account titles. CNOW journals donot use lines for journal explanations. Every line on a journal page isused for debit or credit entries. CNOW journals will automaticallyindent a credit entry when a credit amount is entered. Round your final answer to the nearest dollar.c. Prepare a retained earnings statement forthe year ended December 31, 20Y5. Assume that Morrow Enterprises hadnet income for the year ended December 31, 20Y5, of $1,149,500. Be sureto complete the statement heading. Refer to the chart of accounts andthe lists of Labels and Amount Descriptions for the exact wording oftext entries. A decrease to retained earnings should be entered as anegative amount.d. Preparethe Stockholders’ Equity section of the December 31, 20Y5, balancesheet. Refer to the chart of accounts and the lists of Labels and AmountDescriptions for the exact wording of text entries. For those boxes inwhich you must enter subtractive or negative numbers, use a minus sign.