1. Prepare a General Journal

Upperchurch Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 500,000 75,000 410,000 $ 985,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,900 of its treasury shares at $27 cash per share. Aug. 22 Sold 3,100 of its treasury shares at $20 cash per share. Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $214,000 credit balance (from net income) in the Income Summary account to Retained Earnings. UPPERCHURCH CORPORATION Statement of Retained Earnings For Year Ended December 31 Beginning retained earnings Add: Net income Less: Cash dividends declared Less: Treasury stock reissuances Ending retained earnings UPPERCHURCH CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock - $10 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 5,000 shares of its own stock at Stockholders' equity increased $23 cash per share Jan. 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 Stockholders' equity increased stockholders of record. Feb. 28) Paid the dividend declared on January 5. Stockholders' equity increased Jul. 6) Sold 1,900 of its treasury shares at $27 Stockholders' equity increased cash per share. Aug. 22) Sold 3,100 of its treasury shares at $20 Stockholders' equity increased cash per share. Sep. 5) Directors declared a $2 per share cash dividend payable on October 28 to the September Stockholders' equity increased 25 stockholders of record. Oct. 28) Paid the dividend declared on September Stockholders' equity increased Dec. 31) Closed the $214,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Stockholders' equity increased