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 of the 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:

1. Prepare journal entries for each of these transactions.

2. What is the effect on total stockholders’ equity of each of the four transactions?