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Problem 10-83A Treasury Stock Transactions Hansen Inc. engaged in the following transactions during the current year: a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14. b. Sold 2.000 treasury shares to employees for $6 per share on January 31. c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24, d. Sold the remaining 11,000 shares from the January 14 purchase and 1.200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1. Required: 1. Prepare journal entries for each of these transactions a. Jan. 14 Treasury Stock Cash (Record purchase of treasury shares) b. Jan. 31 Cash Retained Earnings Treasury Stock (Record reissue of treasury shares) July 24 Treasury Stock Cash (Record purchase of treasury shares) d. Aug. 1 Cash Retained Earnings Treasury Stock (Record reissue of treasury shares) Feedback Check My Work 1. When purchasing its own previously issued stock, corporations record a reduction to stockholders' equity for the purchase amount of the treasury stock. 2. Conceptual Connection: Determine what the effect on total stockholders' equity is for each of the four transactions. Note the following: 1. Enter the net increase or decrease by transaction. 2. Enter all amounts as positive values. Decreased by Increased Decreased by by Increased Decreased by by Total Feedback Check My Work 2. Consider the effect on stockholders' equity of the accounts included in the journal entries. Feedback Check My Work Partially correct