ABC Company had the following equity accounts on January 1, 2018: Common Stock ($2 par) $1,600,000, Paid-in Capital in Excess of Par $2,000,000, and Retained Earnings $400,000. In 2018, the company had the following treasury stock transactions. Apr. 1 Purchased 10,000 shares at $14 per share. July 1 Sold 1,600 shares at $20 per share. Oct. 1 Sold 3,400 shares at $18 per share. Dec. 1 Sold 2,000 shares at $10 per share. ABC Company uses the cost method of accounting for treasury stock. In 2018, the company reported net income of $80,000. Required:

(a) Journalize the treasury stock transactions.

(b) Prepare the equity section for ABC Company on December 31, 2018.