Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings L

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Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings L.O. C3, P2, P3
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Context Corporation reports the following components of stockholders’ equity on December 31, 2011.

Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
$ 900,000
Paid-in capital in excess of par value, common stock 80,000
Retained earnings 430,000

Total stockholders' equity $ 1,410,000

In year 2012, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share.
Jan. 5
Directors declared a $4 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 1,688 of its treasury shares at $29 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share.
Sept. 5
Directors declared a $4 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Problem 13-2A Part 1
Required:
1. Prepare journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
Jan. 1
Jan. 5
Feb. 28
July 6
Aug. 22
Sept. 5
Oct. 28
Dec. 31
Problem 13-2A Part 2
2. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.)

CONTEXT CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2012

Retained earnings, Dec. 31, 2011 $

Retained earnings, Dec. 31, 2012 $