The following selected transactions occurred for Corner Corporation:

February 1 Purchased 420 shares of the companys own common stock at $22 cash per share; the stock is now held in treasury.

July 15 Issued 110 of the shares purchased on February 1 for $32 cash per share.

September 1 Issued 70 more of the shares purchased on February 1 for $17 cash per share.

a) Prepare journal entries for each of the transactions.

*Record the purchase of 420 shares of previously issued common stock for a price of $22 per share.

*Record the re-issuance of 110 shares of treasury stock previously purchased for a price of $22 per share and sold for a price of $32 per share.

*Record the re-issuance of 70 shares of treasury stock previously purchased for a price of $22 per share and sold for a price of $17 per share.

b) What impact does the purchase of treasury stock have on dividends paid?

*Dividends ______ paid on treasury stock. *Therefore, the total amount of ___ paid is _____ when treasury stock is purchased.

c) What impact does the reissuance of treasury stock for an amount higher than the purchase price have on net income?