Alexander Corporation reports the following components of stockholders equity on December 31, 2017.

Common stock$25 par value, 60,000 shares authorized,

39,000 shares issued and outstanding $ 975,000

Paid-in capital in excess of par value, common stock 78,000

Retained earnings 371,000

Total stockholders equity $ 1,424,000

In year 2018, the following transactions affected its stockholders equity accounts.

Jan. 2 Purchased 3,900 shares of its own stock at $25 cash per share.

Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.

Feb. 28 Paid the dividend declared on January 7.

July 9 Sold 1,560 of its treasury shares at $30 cash per share.

Aug. 27 Sold 1,950 of its treasury shares at $20 cash per share.

Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.

Oct. 22 Paid the dividend declared on September 9.

Dec. 31 Closed the $61,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:

1. Prepare journal entries to record each of these transactions for 2018.

2. Prepare a statement of retained earnings for the year ended December 31, 2018.

3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2018.