Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016 Common stock-$25 par value, 60,800 shares authorized, 35,800 shares issued and outstanding Paid-in capital in excess of par value, comon stock Retained earnings Total stockholders' equity s 875,000 70,000 357,900 $1,382,0e0 In year 2017, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 3,509 shares of its own stock at $25 cash per share. an. 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 3anuary 7 uly 9 Sold 1,480 of its treasury shares at $38 cash per share Aug. 27 Sold 1,75e 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 $57,000 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 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Treasury stock, common Jan 02 Cash Jan 07 Retained earnings 2 Common dividend payable Feb 28 Common dividend payable Cash Cash Paid-in capital, treasury stock Treasury stock, common Jul 09 Cash Paid-in capital, treasury stock Retained earnings Treasury stock, common Aug 27 Sep 09 Retained earnings Common dividend payable Oct 22 Common dividend payable Cash Dec 31 Income summary Retained earnings Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts t indicated by a minus sign) ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 Add: Net income Less: Cash dividends declared Less: Treasury stock reissuances Retained earnings. December 31 2017