.....50 Problem 2 A Corporation has shareholder equity as follows: (in millions) Common stock 50 million shares, $1 par... Paid in capital common stock. ..................150 Retained earnings............ .................105 A. Its policy is to retire share it reacquires. Prepare the appropriate journal entries for the following transactions: 1. Reacquired 1 million shares at $5 per share. 2. Reacquired 1 million shares at $3.50 Refer to The A Corporation shareholder equity section above. B. The A Corporation treats reacquired shares as treasury shares. Prepare the appropriate journal entries for the following transactions. 1. Purchased 10 million shares for $5 per share. 2. Purchased 8 million shares for $3 per share. 3. Sold 5 million shares for $3 per share (should use the average cost method when selling shares)