During 2012, Patrick completed the following selected transactions.

Feb. 6 - Distributed a 10% stock dividend on the common stock. The market value of Patrick's stock was $26 per share.

July 29 - Purchased 2,000 shares of treasury stock at $26 per share.

Nov. 27 - Declared a $.30 per share cash dividend on the 20,000 shares of common stock oustanding. The date of record is December 17, and the payment date is January 7, 2013.

Dec. 31 - Closed the $86,000 net income to Retained Earnings.

Requirements -

1. Record the transaction in the general journal.

2. Prepare the retained earnings statment for the year ended December 31, 2012.

3. Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use the parentheses or a minus sign for numbers to be subtracted.)