TREASURY STOCK TRANSACTIONS Bentonite Adhesives, Inc., engaged in the following transactions during the current year:

a. Purchased 5,000 shares of its own $15 par common stock for $17 per share on January 14.

b. Sold 2,100 of the treasury shares to employees for $15 per share on January 31.

c. Purchased 1,500 common shares for the treasury at a cost of $25 each on July 24.

d. Sold the remaining 2,900 shares from the January 14 purchase and 1,000 of the shares from the July 24 purchase to employees for $18 per share on August 1.

Required:

. Prepare journal entries for each of these transactions.

. Determine the effect on total stockholders’ equity for each of the four transactions.