Rocklin Corporation reports the following components of stockholders’ equity on December...

Rocklin Corporation reports the following components of stockholders’ equity on December 31, 2009.

In year 2010, 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 $3 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 $3 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 $388,000 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 2010.

2. Prepare a statement of retained earnings for the year ended December 31, 2010.

3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2010.