Recording Treasury Stock Transactions

Han Tire Corporation has outstanding 100,000 shares of preferred stock, $10 par, and also 100,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the preferred stock is $400,000. The retained earnings balance is $816,000.

The company then enters into the following transactions during the year.

Jan. 15: Purchased 5,000 shares of its common stock at $30 per share for the treasury.
Mar. 1: Sold 1,000 shares of the common treasury stock for $26 per share.
Oct. 15: Sold 500 shares of the common treasury stock for $32 per share.
Dec. 31: Sold 500 shares of the common treasury stock for $29 per share.

a. Provide entries to record the treasury stock transactions. b. Prepare the stockholders' equity section of the balance sheet after these transactions are recorded. - Note: Use a negative sign with contra account(s)