$7$

$9$ points

Prawnhorn Corporation purchased from its stockholders $4,900$ shares of its own previously issued stock for $$73,500.$ It later resold $2,450$ shares for $$20$ per share and then sold $2,450$ shares for $$9$ per share.

Prepare journal entries for the purchase of the treasury stock and the two sales of treasury stock.

List debits first. Use DR to designate debits and CR to designate credits. Follow this example:

DR Cash $$14,000$

DR Accounts Receivable $$2,000$

CR Service Revenue $$16,000$