Alex Corporation reports the following components of stockholders’
equity at December 31 of the prior year .

Required
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders’ equity section of the balance sheet as of December 31 of the current year.

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Common stock-$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding.... $ 750,000 Paid-in capital in excess of par value, common stock. 50,000 Retained earnings..... 340,000 Total stockholders' equity $1,140,000