Response to the following problem:
Celine Corporation began operations in 20X8. After issuing its common stock to the public, Celine completed the following treasury stock transactions:
a. Purchased 2,000 shares of the company's $1 par common stock as treasury stock, paying cash of $5 per share.
b. Sold 1,000 shares of the treasury stock for cash of $8 per share. Journalize these transactions. Explanations are not required.
Show how Celine will report treasury stock on its December 31, 20X8. balance sheet after completing the two transactions. In reporting the treasury stock, focus solely on the Treasury Stock account. You may ignore all other accounts.