Answer:
Explanation:
The journal entries are shown below:
a. Treasury stock A/c Dr $156,000         (6,000 shares × $26)
           To Cash A/c  $156,000        
(Being the purchase of treasury stock is recorded)
b. Cash A/c Dr $116,000              (4,000 shares × $29)
             To Treasury Stock A/c $10,4000     (4,000 shares × $26)
             To Paid in capital - Treasury stock $12,000
(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)
c. Cash A/c Dr $44,000              (2,000 shares × $22)
Paid in capital - Treasury stock $8,000
                  To Treasury Stock A/c $52,000       (2,000 shares × $26)
(Being treasury stock is sold at lower price)