The Stockholders' Equity category of Little Joe's balance sheet on January 1, 2010, appeared as follows: common stock , par $5 , 40,000 shares issued and outstanding . 200,000 additional paid to capital . 90,000 Retained Earnings. 100,000 _______ total stock equity 390,000 The following transactions occurred during 2010: a.Reacquired 5,000 shares of common stock at $20 per share on February 1. b.Reacquired 1,200 shares of common stock at $13 per share on March 1.
Required:
1. Record the entries in journal form.
2. What effect did the two transactions to purchase treasury stock and the later reissuance of that stock have on the Stockholders' Equity section of the balance sheet?