Response to the following problem:
Baycore Corp. reports the following components of stockholders' equity on December 31, 2011.
Common stock-$1 par value, 160,000 shares authorized,
100,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . $ 100,000
Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . 700,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,080,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,880,000
It completed the following transactions related to stockholders' equity in year 2012. Jan. 10 Purchased 20,000 shares of its own stock at $12 cash per share. Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record. Mar. 31 Paid the dividend declared on March 2. Nov. 11 Sold 12,000 of its treasury shares at $13 cash per share. Nov. 25 Sold 8,000 of its treasury shares at $9.50 cash per share. Dec. 1 Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record. Dec. 31 Closed the $536,000 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.