Andruw Jones Comapny had the following stockholders equity as of January 1, 2008.
Common Stock, $5 par value, 20000 shares issued $100,000
Paid-in-Capital in excess of par 300,000
Retained earnings 320,000
Total Stockholders equity 720,000
During 2008, the following transactions occurred:
Feb. 1 Jones repurchased 2000 shares of treasury stock at a price of $18 per share.
Mar 1 800 shares of treasury stock repurchased above were reissued at $17 per share
Mar 18 500 shares of treasury stock repurchased above were reissued at $14 per share
Apr 22 600 shares of treasury stock repurchased above were reissued at $20 per share.
Question 1: Prepare the journal entries to record the treasury stock transactions in 2008, assuming Jones uses the cost method.
Question 2: Prepare the stockholders' equity section as of April 30, 2008. Net income for the first 4 months of 2008 was $110,000.