On its December 31, 20x6, balance sheet, Block Corporation reported its stockholders equity as follows: Common stock$5 par value, 1,000,000 shares authorized, 100,000 shares issued and outstanding $500,000 Paid-in capital in excess of par value, common 100,000 Retained earnings 400,000 Total stockholders equity $1,000,000 During 20x7, the following transactions occurred:

1. Reacquired 2,500 shares at $7 per share.

2. Sold 1,200 shares of treasury stock at $8 per share.

3. Sold 500 shares of treasury stock at $6 per share.

Net income for 20x7 amounted to $100,000.

Required:

a. Prepare entries in journal form for the three transactions involving treasury stock.

b. Compute the amount of total stockholders equity to be reported on the December 31, 20x7, balance sheet.