Treasury Stock The Stockholders’ Equity category of Bradford Company’s balance sheet on January 1, 2008, appeared as follows:

The following transactions occurred during 2008:

a. Reacquired 2,000 shares of common stock at $20 per share on July 1.

b. Reacquired 400 shares of common stock at $18 per share on August 1.
Required 1. Record the entries in journal form.
2. Assume that the company resold the shares of treasury stock at $28 per share on October 1.
Did the company benefit from the treasury stock transaction? If so, where is the “gain” presented on the balance sheet?

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Common stock, $10 par, 10,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity $100,000 50,000 80,000 $230,000