E13-7 On January 1, 2017, the stockholders equity section of Newlin Corporation shows

common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and

retained earnings $1,200,000. During the year, the following treasury stock transactions

occurred.

Mar. 1 Purchased 50,000 shares for cash at $15 per share.

July 1 Sold 10,000 treasury shares for cash at $17 per share.

Sept. 1 Sold 8,000 treasury shares for cash at $14 per share.

Instructions

(a) Journalize the treasury stock transactions.

(b) Restate the entry for September 1, assuming the treasury shares were sold at $12 per share