Washington Company has the following stockholders’ equity accounts at December 31, 2012.

Common Stock ($100 par value, authorized 8,000 shares)     $480,000
Retained Earnings                                                                     294,000

Instructions
  (a) Prepare entries in journal form to record the following transactions, which took place during 2013.

(1) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.)
(2) A $20 per share cash dividend was declared.
(3) The dividend declared in (2) above was paid.
(4) The treasury shares purchased in (1) above were resold at $102 per share.
(5) 500 shares of outstanding stock were purchased at $105 per share.
(6) 350 of the shares purchased in (5) above were resold at $96 per share.

  (b) Prepare the stockholders’ equity section of Washington Company’s balance sheet after giving effect to these transactions, assuming that the net income for 2013 was $94,000. State law requires restriction of retained earnings for the amount of treasury stock.