A Company Reported the Following Stockholders' Equity on January 1

Essay

A company reported the following stockholders' equity on January 1 of the current year:
$$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Comrnon stock, } \$ 10 \text { par, } _ { 2 } , 000,000 \text { shares authorized, } 400,000 \text { shares } \\\text { issued }\end{array} & \$ 4,000,000 \\\hline \text { Contributed capital in excess of par, common } & 1,200,000 \\\hline \text { Retained earnings } & 1,600,000 \\\hline \text { Total stockholders } { } ^ { ' } \text { equity } & \$ 6,800,000 \\\hline\end{array}$$
Prepare journal entries for the following selected transactions related to this company's stock during the current year:
$$\begin{array} { | l | l | } \hline \text { Mar. I } & \text { Purchased } 10,000 \text { shares of treasury stock for } \$ 17 \text { per share. } \\\hline \text { May 5 } & \text { Sold 4,000 shares of treasury stock for } \$ 16 \text { per share. } \\\hline \text { Oct. } 12 & \text { Sold 2,000 shares of treasury stock for } \$ 18 \text { per share. } \\\hline\end{array}$$