Answer and Explanation:
The journal entries are given below;
1. Cash Dr, $34,000 (1,700 × $20)
To Common Stock $1,700
To Paid in capital in excess of par-Common Stock $32,300
(Being issue of common stock is recorded)
2.Treasury stock Dr, $4,620 (220 × $21)
To Cash $4,620
(Being repurchase of treasury stock is recorded)
3. Cash Dr, $5,940 (220 × $27)
To Treasury stock $4,620 (220 × $21)
To Paid in capital-Treasury stock $1,320
(Being reissue of treasury stock is recorded)
