1. Mitchell issued 400 shares of common stock for $5,000. There was no par value for the stock issued. Prepare the journal entry for Mitchell Company.

2. In 2017, Morty Co. issued 300,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January 2018, Morty Co. repurchased 30,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had.

Required: Prepare all journal entries for the transactions below

(a) Prepare the journal entry to record the purchase of treasury stock by the cost method.

(b) 11,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry

to record the reissuance by the cost method.

(c) 500 shares of treasury stock are reissued at $28 per share. Prepare the journal entry

to record the reissuance by the cost method.