Agler Corporation's balance sheet reported the following:

Common stock 5,000 shares issued, 4,800 shares outstanding, par $30 per

Share..$150,000

Paid-in capital in excess of par common stock. 80,000

Paid-in capital treasury stock. 1,000

Total Paid-In-Capital $231,000

Retained earnings.. 100,000

$331,000

Less: Treasury stock (200 shares @ $60) at cost12,000

Total Stockholders Equity $319,000

REQUIRED Complete the following transactions under the cost method of accounting for treasury stock.

1. The journal entry for the sale of 150 shares of treasury stock @ $50 per share would be(encircle the one number corresponding to the correct journal entry).

Dr. Cr.

1. Cash 7,500

Loss on Sale of Treasury Stock 1,500

Treasury Stock 9,000

2. Cash 9,000

Gain on Sale of Treasury Stock 1,500

Treasury Stock 7,500

3. Cash 7,500

Paid-In-Capital Treasury Stock 1,000

Retained Earnings 500

Treasury Stock 9,000

4. Cash 7,500

Paid-In-Capital Treasury Stock 750

Retained Earnings 750

Treasury Stock 9,000

5. None of These

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(b) The journal entry for the sale of the remaining 50 shares of treasury stock @ $55 per share would be(encircle the one number corresponding to the correct journal entry).

Dr. Cr.

1. Cash 2,750

Loss on Sale of Treasury Stock 250

Treasury Stock 3,000

2. Cash 3,000

Gain on Sale of Treasury Stock 250

Treasury Stock 2,750

3. Cash 2,750

Paid-In-Capital Treasury Stock 125

Retained Earnings 125

Treasury Stock 3,000

4. Cash 2,750

Retained Earnings 250

Treasury Stock 3,000

5. None of These