On January 1, 2014, the stockholders’ equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.
|
Mar. 1 |
Purchased 50,000 shares for cash at $15 per share. |
|
July 1 |
Sold 10,000 treasury shares for cash at $17 per share. |
|
Sept. 1 |
Sold 8,000 treasury shares for cash at $14 per share. |
Instructions
(a)Journalize the treasury stock transactions.
(b)Restate the entry for September 1, assuming the treasury shares were sold at $12 per share.