On January 1, 2021, 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
- Journalize the treasury stock transactions.
- Restate the entry for September 1, assuming the treasury shares were sold at $12 per share
Solution
