The balance sheet of Lennox Health Foods, at December 31, 2007, reported 100,000 shares of no-par common stock authorized, with 30,000 shares issued and a Common Stock balance of \(\$ 180,000\). Retained Earnings had a balance of \(\$ 140,000\). During 2008, the company completed the following selected transactions:

Requirements 

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders' equity section of Lennox Health Foods' balance sheet at December 31, 2008. 

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Mar. 15 Purchased 5,000 shares of treasury stock at $7 per share. (pp. 694-695) Apr. 30 Distributed a 20% stock dividend on the 25,000 shares of outstanding common stock. The market value of Lennox common stock was $9 per share. (pp. 692-693) Dec. 31 Earned net income of $110,000 during the year. Closed net income to Retained Earnings. (pp. 643-644)