During 2012, Patrick completed the following selectedtransactions.
Feb. 6 – Distributed a 10% stock dividend on the common stock.The market value of Patrick's stock was $26 per share.
July 29 – Purchased 2,000 shares of treasury stock at $26 pershare.
Nov. 27 – Declared a $.30 per share cash dividend on the 20,000shares of common stock oustanding. The date of record is December17, and the payment date is January 7, 2013.
Dec. 31 – Closed the $86,000 net income to RetainedEarnings.
1. Record the transaction in the general journal.
2. Prepare the retained earnings statment for the year endedDecember 31, 2012.
3. Prepare the stockholders' equity section of the balance sheetat December 31, 2012. (Use the parentheses or a minus sign fornumbers to be subtracted.)