Answer:
1, Journal entries
Date Account and explanation Debi$ Credit$
Treasury stock (5200*27) 140,400
Cash 140,400
(To record purchase treasury stock)
Cash (1,050*33) 34,650
Paid in capital from sale of treasury stock 6,300
Treasury stock (1,050*27) 28,350
(To record sale of treasury stock)
Cash (4,150*22) 91,300
Paid in capital from sale of 6,300
treasury stock
Retained earnings 14,450
Treasury stock (4,150*27) 112,050
(To record sale of treasury stock)
2. Revised equity section
<u>Contributed capital</u>
Common Stock 740,000
Paid in capital in excess of <u>226,000</u>
par value-Common Stock
Total paid in capital 966,000
Retained earnings <u> 880,000</u>
Total 1,846,000
Less: Treasury stock <u>(140,400)</u>
Total Stockholder's equity $<u>1,705,600</u>
