The condensed balance sheet of IBC Corporation at December 31, 2002, is shown below.

1. Prepare the journal entries to record the 2003 transactions. 2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2003. 3. Prepare a statement of stockholders’ equity for the year ended December 31, 2003.

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Cash All other assets IBC Corporation Balance Sheet December 31, 2002 Assets Liabilities and Stockholders' Equity Current liabilities. Long-term liabilities Contributed capital: Common stock ($10 par, 100,000 shares authorized, 80,000 shares outstanding). Paid-in capital in excess of par, common stock. Retained earnings. $ 400,000 1,042,000 $1,442,000 $ 164,000 230,000 $ 394,000 $ 800,000 80,000 168,000 $1,048,000 $1,442,000 During 2003, the following transactions affected stockholders' equity: Feb. 15 May 21 Sept. 15 Dec. 21 31 Purchased 2,000 shares of IBC outstanding common stock at $15 per share. Sold 1,200 of the shares purchased on February 15 at $19 per share. Issued 8,000 shares of previously unissued common stock at $21 per share. Sold the remaining 800 shares of treasury stock at $22 per share. Closed net income of $85,360 to Retained Earnings. Revenues were $185,360; ex- penses were $100,000.