Northern Amusement Corporation had the following stockholder's equity on November 30:

On December, Northern purchased 125 shares of treasury stock at $13 per share.

Requirements

1. Journalize the purchase of the treasury stock.

2.Prepare the stockholder's equity section of the balance sheet at December 31,2016. Assume the balance in retained earnings is unchanged from November 30.

3.How many shares of common stock are outstanding after the purchase of treasury stock?

Requirement 1.Journalize the purchase of the treasury stock.(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Stockholder's Equity:

Paid-In Capital:

Common Stock-$5 Par Value;1,300 shares authorized,210 shares issued and outstanding $1,050

Paid-In Capital i. Excess of Par-Common $3,150

Total Paid - In Capital $4,200

Retained Earnings $54,000

Total Stockholder's Equity $58,200