Parker Networking Solutions began operations on January 1, 2018, and immediately issued its stock, receiving cash. Parker’s balance sheet at December 31, 2018, reported the following stockholders’ equity:

Common stock, $1 par...................... $ 59,000
Additional paid-in capital................... 473,500
Retained earnings................................ 40,000
Treasury stock, 300 shares ................ (3,600)
Total stockholders’ equity............... $568,900

During 2018, Parker

a. Issued stock for $9 per share.
b. Purchased 800 shares of treasury stock, paying $12 per share.
c. Resold some of the treasury stock.
d. Declared and paid cash dividends.

Requirement

1. Journalize all of Parker’s stockholders’ equity transactions during the year. Parker’s entry to close net income to Retained Earnings was

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A1 Revenues Expenses Retained Earnings 172,000 110,000 62,000 3