Alexander Corporation reports the following components of stockholders equity on December 31, 2013:
Common stock$25 par value, 50,000 shares authorized,
30,000 shares issued and outstanding $ 750,000
Paid-in capital in excess of par value, common stock 50,000
Retained earnings 340,000
Total stockholders equity $ 1,140,000
In year 2014, the following transactions affected its stockholders equity accounts.
Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share.
Jan. 7 Directors declared a $1.50 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.
Feb. 28 Paid the dividend declared on January 7.
July. 9 Sold 1,200 of its treasury shares at $30 cash per share.
Aug. 27 Sold 1,500 of its treasury shares at $20 cash per share.
Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct. 22 Paid the dividend declared on September 9.
Dec. 31 Closed the $52,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions for 2014.
2. Prepare a statement of retained earnings for the year ended December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)
3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2014.(Amounts to be deducted should be indicated by a minus sign.)