Common stock

Common stock—$26 par value, 48,000 shares authorized,
38,000 shares issued and outstanding $ 988,000 
Paid-in capital in excess of par value, common stock 60,000 
Retained earnings 260,000 

Total stockholders’ equity $ 1,308,000 

In year 2012, the following transactions affected its stockholders’ equity accounts.

Jan. 2 
Purchased 3,200 shares of its own stock at $26 cash per share.
Jan. 7 
Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.
Feb. 28 Paid the dividend declared on January 7.
July 9 Sold 500 of its treasury shares at $31 cash per share.
Aug. 27 Sold 2,700 of its treasury shares at $24 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 $12,000 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 2012. (Omit the "$" sign in your response.)

Jan. 2 


Jan. 7 


Feb. 28 


July 9 



Aug. 27 




Sept. 9 


Oct. 22 


Dec. 31 


2. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

KROLL CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2012
$ 






$ 



3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2012. (Omit the "$" sign in your response.)


KROLL CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2012
$ 



Total stockholders’ equity $