In 2019, Southwestern Corporation reacquired shares of its common stock and later sold shares in two separate transactions. Southwestern had the following account balances at December 31, 2018:

Stockholders Equity

Common stock, 100,000 shares at $1 par, .............. $ 100,000 Paid-in capital excess of par.................................. 900,000 Retained earnings.................................................... 500,000

Required:

1. On the following page, prepare the entries for both the purchase and subsequent resale of shares, treated as retired stock for the following entries:

February 2: Reacquired 70,000 shares of stock at $12 per share.

March 14: Sold 20,000 shares at $14 per share.

May 12: Sold 25,000 shares at $8 per share.

2. On the following page, prepare the entries for both the purchase and subsequent resale of shares, treated as treasury stock for the following entries:

February 2: Reacquired 70,000 shares of stock at $12 per share.

March 14: Sold 20,000 shares at $14 per share.

May 12: Sold 25,000 shares at $8 per share.