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Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 70,000 shares authorized, 49,000 shares issued and outstanding $ 1,225,000 Paid-in capital in excess of par value, common stock 98,000 Retained earnings 406,000 Total stockholders' equity $ 1,729,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,900 shares of its own stock at $25 cash per share. January 7 Directors declared a $1.50 por share cash dividend payable on February 28 to the February 9 stockholders of record. February 28 Paid the dividend declared on January 7. July 9 Sold 1,960 of its treasury shares at 530 cash per share. August 27 Sold 2,450 of its treasury shares at $21 cash per share. Directors declared a $2 per sbare cash dividend payable on October 22 to the September 23 stockholders of September 9 record. October 22 Paid the dividend declared on September 9. December 31 closed the $71,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. 2 3 4 5 6 78 > Record the purchase of 4,900 shares of its own common stock for $25 cash per share. Note: Enter debits before credits. + Date General Journal January 02 Debit Credit ALEX CORPORATION Statement of Retained Earnings For Current Year Ended December 31 $ 0 ALEX CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 0 Total stockholders' equity $

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