Questions -
1. Lomas Corporation's balance sheet reported the following:
Capital stock outstanding, $4,000 shares, par $20 per share $80,000.
Paid-in capital in excess of par $50,000.
Retained earnings $125,000.
The following transactions occurred this year:
a- Purchased 110 shares of shares of capital stock to be held as treasury stock, paying $52 per share.
b- Sold 80 of the shares of treasury stock at $60 per share.
c- Sold the remaining shares of treasury stock at $50 per share.
Instructions: Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.
2. Westin Corporation had the following transaction.
a- Issued 3,500 shares of common stock with a stated value of $12 for $85,000.
b- Issue 1,600 shares of $90 par preferred stock at $110 for cash.
Instructions: Prepare the journal entries to record the above stock transactions.