Monty Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5par) $500,000, Paid-in
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Monty Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5par) $500,000, Paid-in Capital in Excess of ParCommon Stock $210,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock transactions.
Mar.1 Purchased6,000shares at $8per share.
June 1 Sold1,500shares at $13per share.
Sept.1 Sold2,000shares at $10per share.
Dec.1 Sold1,500shares at $6per share.
Monty Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $34,000.
Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2020, for net income.
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