Journal entries for treasury stock transactions. Prepare journal entries under the cost method to record the following treasury stock transactions of Danos Corporation.
a. Purchases 10,000 shares of its own $10 par value common stock for $30 per share.
b. Issues 6,000 treasury shares to employees under stock option plans. The exercise price is $32 per share. Assume that the market price of the common stock on the exercise date is $35 per share. The stock options had a value of $6 per option when issued, which the firm has already amortized to expense.
c. Purchases 7,000 shares of its own common stock for $38 per share.
d. Issues 8,000 treasury shares in the acquisition of land valued at $300,000. Danos Corporation uses a FIFO assumption for reissues of treasury stock.
e. Sells the 3,000 remaining shares of treasury stock for $36 per share.