Early in 2017, ABC Company was formed with authorization to issue 7%, 10,000 shares of preferred stock, $ 100 Par and 100,000 shares of common stock, $ 10 Par. 70% preferred stock were issued @ $ 130 per share and 50% common stock were issued @ $ 50 per share. The company reported net income of $ 1,600,000 in 2017, $ 2,000,000 in 2018 and $ 1,300,000 in 2019. The dividend declared and subsequently paid on common stock were as follows:

2017 130%, 2018-150% and 2019-170%.

In 2017, the company purchased its own shares, 10,000 @ $ 120 per share in the open market. In 2018, it reissued 5,000 shares @ $ 130 per share and in 2019, it reissued 2,000 shares @ $ 100 per share.

Required: a. Prepare journal entries for purchase and reissue of treasury shares for 2017, 2018 and 2019.

b. Prepare the stockholders equity section of the Balance Sheet as at 31st December, 2017, 2018 and 2019. Include the supporting schedules showing your computations of retained earnings at the balance sheet dates.

c. As of 31st December each year, compute the companys book value per share of common stock.