A Company's Only Treasury Share Transactions for the Current Year

Essay

A company's only treasury share transactions for the current year follow: (1) 1,000 of its ordinary shares were purchased on June 1 for $40,000; (2) On July 1, it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share.
1) Prepare the journal entries required to record these transactions.
2) Calculate the balance in Treasury Shares-Ordinary account, on September 1 assuming its beginning-year balance is zero.