Example 7

In 2022, Claire Corporation entered into the treasury stock transactions described below. Prior to these transactions, Claire had 5,000 shares of its $30 par common stock issued and outstanding.

Feb 1: Claire reacquired 400 shares of stock at $60 per share.

Aug 1: Claire sold 300 treasury shares at $65 per share.

Nov 1: Claire sold the remaining treasury shares at $50 per share.

Required:

Prepare the appropriate journal entry for each of the following transactions.