On January 1, 2019, the stockholders’ equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.

On January 1, 2019, the stockholders’ equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.

Mar.    1        Purchased 50,000 shares for cash at $15 per share.
July    1        Sold 10,000 treasury shares for cash at $17 per share.
Sept.      1        Sold 8,000 treasury shares for cash at $14 per share.

Journalize the treasury stock transactions.

Explanation
Mar.    1        Treasury Stock       =     (50,000 × $15)       =     $750,000
                          
July    1        Cash       =     (10,000 × $17)       =     $170,000
            Treasury Stock       =     (10,000 × $15)       =     $150,000
            Paid-in Capital from Treasury Stock       =     (10,000 × $2)       =     $20,000
                          
Sept.      1        Cash       =     (8,000 × $14)       =     $112,000
            Paid-in Capital from Treasury Stock       =     (8,000 × $1)       =     $8,000
            Treasury Stock       =     (8,000 × $15)       =     $120,000
Restate the entry for September 1, assuming the treasury shares were sold at $12 per share.

Explanation
Sept. 1        Cash        =        (8,000 × $12)        =        $96,000
        Treasury Stock        =        (8,000 × $15)        =        $120,000
Thank you!