Clemson Company had the following stockholders equity as of January 1, 2014.
Common Stock, $5 par value, 28,200 shares issued - $141,000
Paid-in Capital in Excess of par - common stock - 316,600
Retained earnings - 339,500
Total Stockholders equity - $797,100
During 2014, the following transactions occurred.
Feb. 1. Clemson repurchased, 2,230 shares of treasury stock at a price of $19 per share
March 1- 860 shares of treasury stock repurchased above were reissued at $17 per share.
March 18- 420 shares of treasury stock repurchased above were reissued at $173 per share.
April 22- 670 shares of treasury stock repurchased above were reissued at $20 per share.
a. Prepare the journal entries to record the treasury stock transactions in 2014, assuming Clemson uses the cost method.
Feb. 1- 2 entries
March 2- 3 entries
March 18- 3 entries
April 22- 3 entries
b. Prepare the stockholders equity section as of April 30, 2014. Net income for the first 4 months of 2014 was $134,700.