Problem #3 Corporations

Big & Little Ltd, was a public company that specialized in clothing. It had 450,000 shares of $1 par common stock outstanding. Due to economic circumstances the Board of Directors decided to buy back some of the outstanding stock and then resell it later in the year. The transactions that occurred were:

January 1: Purchased 100,000 shares of common stock at $15 per share.

February 1: Sold 10,000 shares of this stock at $16 per share.

March 1: Sold 10,000 shares of this stock at $10 per share.

April 1: Retire the remaining shares of this stock. Original purchase price was $5 per share in 2018.

Required: Record the entries for the above transactions.