Treasury Stock Putman Corporation has 400,000 shares of $10-par value common stock authorized.

At January 1, 2000, the stockholders’ equity section of its balance sheet consisted of the following:

During 2000, Putman was involved in the following transactions:
1. An additional 50,000 shares of stock were sold at $27 each.
2. A total of 15,000 shares were repurchased at $43 per share.
3. 7,000 treasury shares were sold for $56 each.
4. An additional 2,000 treasury shares were sold for $40 each.
5. A cash dividend of $1.50 per share was declared and paid.
6. Net income for 2000 was $340,000.
Required:

a. Present the journal entries to record transactions 1 through 5).

b. Prepare the stockholders’ equity section of Putman’s balance sheet at December 31, 2000.

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Common stock Additional paid-in capital Retained earnings Total $ 700.000 140,000 790,000 $1,630,000