Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 60,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 875,000 70,000 357,000 Total stockholders' equity $ 1,302,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 January 7 February 28 July 9 August 27 September 9 October 22 Purchased 3,500 shares of its own stock at $25 cash per share. 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 1,400 of its treasury shares at $30 cash per share. Sold 1,750 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. December 31 Closed the $57,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. No 1 Date January 02 General Journal Debit Credit Treasury stock, common 87,500 Cash 87,500 2 January 07 Retained earnings Common dividend payable 3 February 28 Common dividend payable Cash 4 July 09 Cash Treasury stock, common Paid-in capital, treasury stock 5 August 27 Cash Paid-in capital, treasury stock Treasury stock, common 47,250 47,250 47,250 47,250 42,000 35,000 7,000 36,750 7,000 43,750 6 September 09 Retained earnings 69,300 Common dividend payable 69,300 7 October 22 Common dividend payable Cash 8 December 31 Income summary Retained earnings < Required 1 Required 2 > 69,300 69,300 57,000 57,000 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (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 $ 357,000 57,000 (116,550) Less cash dividends declared Retained earnings, December 31, current year $ 297,450 < Required 1 Required 3 > Answer is complete but not entirely correct. 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. (Amounts to be deducted should be indicated by a minus sign.) ALEX CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock $25 par value $ 875,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings Less: Cost of treasury stock Total stockholders' equity 297,450 (7,000) x $ 1,235,450 < Required 2 Required 3 >