Korhal Corporation reports the following components of stockholders' equity at December

31, 2018

Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding

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

60.000

Retained earnings

270.000

Total stockholders' equity

During 2019, the following transactions affected its stockholders' equity accounts.

Jan. 2 Purchased 4,000 shares of its own stock at $20 cash per share..

$730.000

comm

Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

July 6 Sold 1,500 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share.

Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.

Oct. 28 Paid the dividend declared on September 5.

Dec. 31 Closed the $388,000 credit balance (from net income) in the income summary account to Retained Earnings.

a.

Prepare journal entries to record each of these transactions. [4 Marks]

b. Prepare a statement of retained earnings for the year ended December 31, 2019. [1 Mark] C. Prepare the stockholders' equity section of the company's balance sheet as of December 31,

2019. [2 Mark]