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    Stockholder's equity, statement of retained earnings

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    13-2A Contex Corporation reports the following components of stockholders' equity on December 31, 2011.

    Common stock - $10 par value, 50,000 shares authorized,
    20,000 shares issued and outstanding..................................$200,000
    Paid-in capital in excess of par value, common stock................ 30,000
    Retained earnings......................................................................135,000
    Total stockholders' equity...........................................................$365,00

    In year 2012, the following transactions affected its stockholders' equity accounts.

    Jan. 1 - Purchased 2,000 shares of its own stock at $20 each per share.
    Jan. 5 - Directors declared a $2 per share cash dividend payable on Feb. 28 to Feb. 5 stockholders of record.
    Feb. 28 - Paid the dividend declared on January 5.
    July 6 - Sold 750 of its treasury shares at $24 cash per share
    Aug. 22 - Sold 1,250 of its treasury shares at $17 cash per share.
    Sept 5 - Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
    Oct. 28 - Paid the dividend declared on September 5.
    Dec 31 - Closed the $194,000 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 2012.
    2. Prepare a statement of retained earnings for the year ended December 31, 2012.
    3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2012.

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