Alex Corporation reports the following components of stockholders equity at December 31 of the prior year.

Common stock$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding$ 825,000Paid-in capital in excess of par value, common stock66,000Retained earnings350,000Total stockholders equity$ 1,241,000

During the current year, the following transactions affected its stockholders equity accounts.

January 2Purchased 3,300 shares of its own stock at $25 cash per share.January 7Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.February 28Paid the dividend declared on January 7.July 9Sold 1,320 of its treasury shares at $30 cash per share.August 27Sold 1,650 of its treasury shares at $21 cash per share.September 9Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.October 22Paid the dividend declared on September 9.December 31Closed the $55,000 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.