5 points Check my work Exercise 11-24 (Static) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 750,000 50,000 340,000 eBook Hint Print References Total stockholders' equity $ 1,140,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,000 shares of its own stock at $25 cash per share. January 7 February 28 July 9 August 27 September 9 October 22 December 31 Required: Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Paid the dividend declared on January 7. Sold 1,200 of its treasury shares at $30 cash per share. Sold 1,500 of its treasury shares at $21 cash per share. Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Paid the dividend declared on September 9. Closed the $52,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. 15 points 1 eBook Hint Print References 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Note: Amounts to be deducted should be indicated by a minus sign. ALEX CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Retained earnings Common stock $25 par value Paid-in capital in excess of par value, common stock Less: Cost of treasury stock Total stockholders' equity < Required 2 $ 0 Required 3 > 1 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. nts Required 1 Required 2 Required 3 eBook Hint Print eferences Prepare a statement of retained earnings for the current year ended December 31. Note: Amounts to be deducted should be indicated by a minus sign. ALEX CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year Plus net income $ 340,000 52,000 Less cash dividends declared Retained earnings, December 31, current year $ 392,000 < Required 1 Required 3 >