The balance sheet of Puebla Corporation at December 31, 19X3, presented the following stockholders' equity:

During 19X4, Puebla completed the following selected transactions:
Jan. 7 Discovered that income tax expense of \(19 \mathrm{X} 3\) was overstated by \(\$ 12,000\). Recorded a prior-period adjustment to correct the error.
Mar. 29 Declared a 50 -percent stock dividend on the common stock. The market value of Puebla common stock was \(\$ 5\) per share. The record date was April 19, with distribution set for May 19 .
May 19 Issued the stock dividend shares.
July 13 Purchased 2,000 shares of the company's own common stock at \(\$ 6\) per share.
Oct. 4 Sold 1,600 shares of treasury common stock for \(\$ 8\) per share.
Dec. 27 Declared a \(\$ 0.20\) per share dividend on the common stock outstanding. The date of record was January 17, 19X5, and the payment date was January 31.
31 Closed the \(\$ 71,000\) credit balance of Income Summary to Retained Earnings.
\section*{Required}
1. Record the transactions in the general journal.
2. Prepare the retained earnings statement at December 31, 19X4.
3. Prepare the stockholders' equity section of the balance sheet at December 31, 19X4.

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Paid-in capital: Common stock, $1 par, 250,000 shares authorized, 50,000 shares issued... Paid-in capital in excess of par-common Total paid-in capital........ Retained earnings. Total stockholders' equity... $ 50,000 350,000 400,000 110,000 $510,000