Problem: On January 1, 2002, the stockholders' equity section of Ted Parge Corporation shows: common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $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 $14 per share.
July 1 Sold 10,000 treasury shares for cash at $16 per share.
Sept.1 Sold 8,000 treasury shares for cash at $13 per share.
Instructions:
(a) Journalize the treasury stock transactions.
(b) Restate the entry for September 1, assuming the treasury shares were sold at $11 per share.