Quality Corporation reports the following information in its January 1, 2013, balance sheet:
Stock holders equity
Common stock, $10 par value, 100,000 shares authorized, 50,000
shares issued and outstanding ............. $500,000
Paid-in capital in excess of par value .......... 150,000
Retained earnings ................. 120,000
Total stockholders equity ............... $770,000
During 2013, Quality was affected by the following accounting events:
1. Purchased 2,000 shares of treasury stock at $15 per share.
2. Reissued 1,200 shares of treasury stock at $18 per share.
3. Earned $72,000 of cash revenues.
4. Paid $41,000 of cash operating expenses.
Required:
a. Provide journal entries to record these transactions.
b. Prepare the stockholders equity section of the year end balancesheet.