Brandon Corporation had the following stockholders' equity accounts on January 1, 2012: Common Stock ($5 par) $510,700, Paid-in Capital in Excess of Par-Common Stock $175,360, and Retained Earnings $114,880. In 2012, the company had the following treasury stock transactions.
Mar. 1 Purchased 6,930 shares at $8 per share.
June 1 Sold 1,040 shares at $12 per share.
Sept. 1 Sold 1,720 shares at $10 per share.
Dec. 1 Sold 1,440 shares at $7 per share.
Brandon Corporation uses the cost method of accounting for treasury stock. In 2012, the company reported net income of $27,140.
Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2012, for net income.