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, 44,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 1,100,000 88,000 389,000 $ 1,577,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,400 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 January 7 February 9 stockholders of record. February 28 Paid the dividend declared on January 7. July 9 Sold 1,760 of its treasury shares at $30 cash per share. August 27 Sold 2,200 of its treasury shares at $21 cash per share. Directors declared a $2 per share cash dividend payable on October 22 to the September 9 September 23 stockholders of record. October 22 Paid the dividend declared on September 9. Closed the $66,000 credit balance (from net income) in the Income Summary account to December 31 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. 1 Record the purchase of 4,400 shares of its own common stock for $25 cash per share. 2 Record the declaration of a cash dividend of $1.50 per share. 3 Record the payment of the cash dividend declared on January 7. 4 Record the reissue of 1,760 shares of the treasury stock for $30 cash per share. 5 Record the reissue of 2,200 shares of the treasury stock for $21 cash per share. 6 Record the declaration of a cash dividend of $2 per share. 7 Record the payment of the cash dividend declared on September 9. 8 Record the entry to close the $66,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Prepare a statement of retained earnings for the current year ended December 31. ( indicated by a minus sign.) ALEX CORPORATION Statement of Retained Earnings For Current Year Ended December 31 $ 0 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. should be indicated by a minus sign.) ALEX CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total stockholders' equity $ 0