Prepare Journal Entires: A company reported the following stockholders’ equity on January 1 of the current year: A company reported the following stockholders' equity on January 1 of the current year:Common stock-$10 par value, 1,000,000 shares authorized;260,000 shares issuedPaid-in capital in excess of par value, common stockRetained earningsTotal stockholders' equityPrepare journal entries for the following selected transactions.March 1 Purchased 11,000 shares of its own stock for $21 cash per share.May 5Sold 5,000 shares of its treasury stock for $21 cash per share.October 12 Sold 3,000 shares of its treasury stock for $22 cash per share.View transaction list12Purchased 11,000 shares of its own stock for $21 cashper share.Sold 5,000 shares of its treasury stock for $21 cash pershare.3 Sold 3,000 shares of its treasury stock for $22 cash pershare.$ 2,600,0001,270,0001,685,000$ 5,555,000XCredit>

Journal Entry is the primary step in recording the transactions in the books of accounts.The increase in the assets is debited while increase the liabilities is credited.Expenses incurred are debited while revenue earned is credited.DateAccount Titles and ExplanationsDebit ($)Credit ($)Mar. 1Treasury Stock=11,000*21 Cash =11,000*21 (To record Treasury Stock purchased) May. 5Cash=5,000*21 Treasury Stock =5,000*21 (To record treasury stock resold) Oct. 12Cash=3,000*22 Paid in capital in excess of par- Treasury Stock =3,000*(22-21) Treasury Stock =3,000*21 (To record treasury stock resold) Journal Entries: DateAccount Titles and ExplanationsDebitCreditMar. 1Treasury Stock$231,000 Cash $231,000 (To record Treasury Stock purchased) May. 5Cash$105,000 Treasury Stock $105,000 (To record treasury stock resold) Oct. 12Cash$66,000 Paid in capital in excess of par- Treasury Stock $3,000 Treasury Stock $63,000 (To record treasury stock resold)