Answer:
The Journal entries are as follows:
On September 1,
(a) Cash A/c [8,500 × $14] Dr. $119,000
Excess of paid in capital A/c [8,500 × $1] Dr. $8,500
To treasury stock $127,500
(To record the treasury shares for cash)
(b) Cash A/c [8,500 × $11] Dr. $93,500
Excess of paid in capital A/c Dr. $20,000
Retained earnings A/c Dr. $14,000
To Treasury stock $127,500
(To record the restate entry for September 1)
