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

a. Purchased 4,000 shares of its own $20 par common stock for $26 per share on January 14.

b. Sold 2,400 treasury shares to employees for $20 per share on January 31.

c. Purchased 2,000 common shares for the treasury at a cost of $27 each on July 24.

d. Sold the remaining 1,600 shares from the January 14 purchase and 1,500 of the shares from the July 24 purchase to employees for $22 per share on August 1.

Required:

. Prepare journal entries for each of these transactions.

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