Context 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 $ 365,000
In year 2012, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 2,000 shares of its own stock at $20 cash per share.
Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the 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.
Prepare journal entries to record each of these transactions for 2012.
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