Share Repurchases. Your company has the following Stockholders Equity as of the beginning of the current year

Common Stock; 350,000 shares outstanding, $1 par $350,000

Paid in Capital Common Stock $4,900,000

Retained Earnings $4,000,000

Accumulated Other Comprehensive Income $750,000

Total Stockholders Equity $10,000,000

During the year, the company entered into the following transactions in this order:

• Repurchased 15,000 shares at a cost of $20 per share
• Sold 5,000 shares for $25 per share
• Declared a cash dividend of $.10 (ten cents) per share
• Net Income for the year was $100,000

Required: Prepare the Stockholders Equity section of the balance sheet at the end of the year under each of the following two methods:

1. The company accounts for repurchased shares by retiring them.
2. The company accounts for repurchased shares as Treasury Stock

Please prepare either Journal Entries or T-Accounts (or both) so that I can follow your work and award partial credit if necessary.