28. On its December 31, 20x5, balance sheet, Wesco Corporation reported its stockholders equity as follows:

Common stock$5 par value, 100,000 shares authorized,

50,000 shares issued and outstanding $250,000

Paid-in capital in excess of par value, common 125,000

Retained earnings 400,000

Total stockholders equity $775,000

During 20x6, the following transactions occurred:

1. Reacquired 2,500 shares at $7 per share.

2. Sold 1,200 shares of treasury stock at $8 per share.

3. Sold 500 shares of treasury stock at $6 per share.

Net income for 20x6 amounted to $80,000.

Required:

a. Prepare entries in journal form for the three transactions involving treasury stock.

b. Compute the amount of total contributed capital to be reported on the December 31, 20x6, balance sheet.