The balance sheet of Morrisey Management Consulting, Inc., at December 31, 2007, reported the following stockholders' equity:

During 2008, Morrisey completed the following selected transactions:

Requirements 

1. Record the transactions in the general journal.

2. Prepare a retained earnings statement for the year ended December 31, 2008.

3. Prepare the stockholders' equity section of the balance sheet at December 31, 2008. 

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Paid in capital: Common stock, $10 par, 100,000 shares authorized, 20,000 shares issued Paid-in capital in excess of par... Total paid-in capital............... Retained earnings........ Total stockholders' equity $200,000 300,000 500,000 160,000 $660,000