The stockholders’ equity section of Rodman Corporation as of December 31, 1996, follows. Common stock $ 80,000 Additional paid-in capital (C/S) 10,000 Retained earnings 60,000 Total stockholders’ equity $150,000 During 1997 the company entered into the following transactions. 1. Purchased 1,000 shares of treasury stock for $60 per share. 2. As part of a compensation package, reissued half of the treasury shares to executives who exercised stock options for $20 per share. 3. Reissued the remainder of the treasury stock on the open market for $66 per share. Chapter 12 Stockholders’ Equity 625 REQUIRED:

a. Provide the journal entries for each transaction, and prepare the stockholders’ equity sec¬ tion of the balance sheet as of December 31, 1997. Rodman Corporation generated $20,000 in net income during 1997 and did not declare any dividends.

b. What portion of the Additional Paid-In Capital account is attributed to treasury stock trans¬ actions?