Problem: A company reported the following stockholders' equity on January 1 of the current year:
Common stock, $10 par, 1,000,000 shares
authorized, 400,000 shares issued ------------------------- $4,000,000
Paid- in capital in excess of par, common------------------- 1,200,000
Retained earnings----------------------------------------------- 1,600,000
Total stockholders' equity------------------------------------- $6,800,000
Prepare journal entries for the following selected transactions related to this company's stock during the current year.
Mar. 1 Purchased 10,000 shares of treasury stock for $17 per share.
May 5 Sold 4,000 shares of treasury stock for $16 per share.
Oct. 12 Sold 2,000 shares of treasury stock for $18 per share.