Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 70,000 shares authorized, 42,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 1,050,000 84,000 382,000 $ 1,516,000 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 December 31 Required: Purchased 4,200 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 1,680 of its treasury shares at $30 cash per share. Sold 2,100 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 $64,000 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. Journal entry worksheet 1 2 345678 Record the purchase of 4,200 shares of its own common stock for $25 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit 105,000 105,000 January 02 Treasury stock, common Cash Record entry Clear entry View general journal 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 0 ALEX CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total stockholders' equity 0