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Alexander Corporation reports the following components of stockholders’ equity on December 31, 2013: |
| Common stock—$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding |
$ | 1,000,000 | ||
| Paid-in capital in excess of par value, common stock | 80,000 | |||
| Retained earnings | 375,000 | |||
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| Total stockholders’ equity | $ | 1,455,000 | ||
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In year 2014, the following transactions affected its stockholders’ equity accounts. |
| Jan. | 2 |
Purchased 4,000 shares of its own stock at $25 cash per share. |
| Jan. | 7 |
Directors declared a $1.50 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 1,600 of its treasury shares at $30 cash per share. |
| Aug. | 27 | Sold 2,000 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 $62,000 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 2014.
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