I-9 Networking Solutions began operations on January 1, 2012, and immediately issued its stock, receiving cash. I-9s

I-9 Networking Solutions began operations on January 1, 2012, and immediately issued its stock, receiving cash. I-9’s balance sheet at December 31, 2012, reported the following stockholders’ equity:

Common stock, $1 par...................... $ 56,000

Additional paid-in capital.................. 394,400

Retained earnings.............................. 41,000

Treasury stock, 500 shares................ (2,000)

Total stockholders’ equity............ $489,400

During 2012, I-9

a. issued stock for $8 per share.

b. purchased 800 shares of treasury stock, paying $4 per share.

c. resold some of the treasury stock.

d. declared and paid cash dividends.

Requirement

1. Journalize all of I-9’s stockholders’ equity transactions during the year. I-9’s entry to close net income to Retained Earnings was asfollows:

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Revenues 177,000 112,000 65,000 Expenses Retained Earnings