Question 1: Diwali Company had the following stockholders' equity as of January 1, 2020. Common stock, $5 par value, 20,000 shares issued $100,000 Paid-in capital in excess of par-common stock 300,000 Retained earnings 320,000 Total stockholders' equity $720,000 During 2020, the following transactions occurred. Feb. 1 Diwali repurchased 2,000 shares of treasury stock at a price of $17 per share. Mar. 1 800 shares of treasury stock repurchased above were reissued at $15 per share. Mar. 8 500 shares of treasury stock repurchased above were reissued at $12 per share. Apr. 11 600 shares of treasury stock repurchased above were reissued at $18 per share. a. Prepare the journal entries to record the treasury stock transactions in 2020, assuming Diwali uses the cost method. [2 Marks) b. Prepare the stockholders' equity section as of April 30, 2020. Net income for the first 4 months of 2020 was $110,000. [2 Mark]