The stockholder's equity of Thomas Company as of December 31, 2007,was as follows:
Common stock, $1 par, authorized 275,000 shares
240,000 shares issued andoutstanding............................. $240,000
Paid-in capital in excess ofpar.............................................. 3,840,000
RetainedEarnings............................................................... 900,000
On June 1, 2008, Thomas reacquired 15,000 shares of its commonstock at $16. The following transactions occurred in 2008 withregard to these shares.
July 1 Sold 5,000 shares at $20
Aug 1 Sold 7,000 shares at $14
Sept 1 Retired 1,000 shares
Using the cost method and par value method for treasury stock:
Prepare journal entries and stockholders' equity assuming RetainedEarnings of $1,005,000 (before the effects of treasury stocktransactions)