Entries for selected corporate transactionsOBJ. $3,4,5,7$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, $375,000$ 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 a cost of $$18$ per share$)..............................450,000$The following selected transactions occurred during the year:Jan$\mathrm{.}22.$Paid cash dividends of $$0\mathrm{.}08$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$28,000.$Apr$\mathrm{.}10.$Issued $75,000$ shares of common stock for $$24$ per share.June$6.$Sold all of the treasury stock for $$26$ per share.July$5.$Declared a $4\%$ stock dividend on common stock, to be capitalized at the mar$-$ket price of the stock, which is $$25$ per share $667$Aug$\mathrm{.}15.$Issued the certificates for the dividend declared on July $5.$Nov$\mathrm{.}23.$Purchased $30,000$ shares of treasury stock for $$19$ per share.Dec$\mathrm{.}28.$Declared a $$0\mathrm{.}10-$per$-$share dividend on common stock$\mathrm{.}31.$Closed the two dividends accounts to Retained Earnings.Instructions$1.$Enter the January $1$ balances in T accounts for the stockholders$$ equity accounts listed. Also prepare T accounts for the following: Paid$-$In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends$\mathrm{.}2.$Journalize the entries to record the transactions and post to the eight selected accounts$\mathrm{.}3.$Prepare a retained earnings statement for the year ended December $31,20$Y$5\mathrm{.}4.$Prepare the Stockholders$$ Equity section of the December $31,20$Y$5,$ balance sheet us$-$ing Method $1$ of Exhibit $8$