Problem: Mosby Company's balance sheet shows:
Common stock, $20 par $3,000,000
Paid-in capital in excess of par 1,050,000
Retained earnings 750,000
Record the following transactions by the cost method.
a. Bought 5,000 shares of its common stock at $30 a share.
b. Sold 2,500 treasury shares at $31 a share.
c. Sold 1,000 shares of treasury stock at $27 a share.