An inexperienced accountant for Duran Corporation made the following entries. July 1 Cash 170,000 Common Stock 170,000 (Issued 25,000 shares of common stock, par value $6 per share)

Sept. 1 Common Stock 24,000 Retained Earnings 16,000 Cash 40,000 (Purchased 4,000 shares issued on July 1 for the treasury at $10 per share) Instructions On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions.