On January 1, 2004, the stockholders’ equity section of Parge Hotels Corporation shows: common stock ($5 par value) $1,500,000; paid-in capital in excess of par value

$1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred. LO5 Mar. 1 Purchased 50,000 shares for cash at $14 per share.

July 1 Sold 10,000 treasury shares for cash at $16 per share.

Sept. 1 Sold 8,000 treasury shares for cash at $13 per share.

Instructions

(a) Journalize the treasury stock transactions.

(b) Restate the entry for September 1, assuming the treasury shares were sold at $11 per share.