Exercise 13-18 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, 70,000 shares authorized, 44,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 88,000 Retained earnings 389,000 Total stockholders equity $ 1,577,000 In year 2017, the following transactions affected its stockholders equity accounts. Jan. 2 Purchased 4,400 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 1,760 of its treasury shares at $30 cash per share. Aug. 27 Sold 2,200 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 $66,000 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 companys balance sheet as of December 31, 2017.