Brevet Corporation's stockholders' equity on December 31, 1989, consisted of the following:

During 1990, the company completed these transactions:
Apr. 8 Purchased 900 shares of treasury stock at \(\$ 40\) per share.
27 The directors voted a \(\$ 0.45\) per share cash dividend payable on May 26 to the May 15 stockholders of record.
May 26 Paid the dividend declared on April 27.
July 19 Sold 500 of the treasury shares at \(\$ 45\) per share.
Oct. 10 Sold 400 of the treasury shares at \(\$ 35\) per share.
Dec. 22 The directors voted a \(\$ 0.45\) per share cash dividend payable on January 25 to the January 10 stockholders of record, and they voted a \(2 \%\) stock dividend distributable on February 15 to the February 1 stockholders of record. The market value of the stock was \(\$ 42\) per share.
31 Closed the Income Summary account and carried the company's \(\$ 25,000\) net income to Retained Earnings.
31 Closed the Cash Dividends Declared and Stock Dividends Declared accounts.
\section*{Required}
1. Prepare general journal entries to record the transactions.
2. Prepare a retained earnings statement for the year and the stockholders' equity section of the company's year-end balance sheet.

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Common stock, $25 par value, 30,000 shares authorized, 10,500 shares issued.. Contributed capital in excess of par value, common stock Retained earnings. Total stockholders' equity. $262,500 42,000 95,000 $399,500