Problem
Sally Fraser Corporation had the following transactions during 2017, its first year of operations, related to its $2.50 par value (300000 shares authorized) common stock:
1/10/17 Issued 84,000 shares of common stock for cash at $3 per share.
3/1/17 A
7/1/17 Issued 27,000 shares for cash at $8 per share.
9/1/17 Reacquired 6,000 shares for cash at $9 per share.
11/1/17 Reissued 2,000 shares of those acquired on Sept. 1 for cash at $6 per share.
State law where Sally Fraser is incorporated restricts retained earnings for the balance of any treasury stock account.
Required:
Prepare the above journal entries in general journal form.
Prepare the balance sheet sections affected by the above entries at December 31, 2017. Sally Fraser prepares a classified balance sheet.