Swifty Corporation's balance sheet reported the following: Capital stock outstanding, 4,500 shares, par $30 per share $135,000Paid-in capital in excess of par 79,700Retained earnings 108,500 The following transactions occurred this year: (a) Purchased 190 shares of capital stock to be held as treasury stock, paying $54 per share.(b) Sold 150 of the shares of treasury stock at $59 per share.(c) Sold the remaining shares of treasury stock at $44 per share. Prepare the journal entry for these transactions under the cost method of accounting for treasury stock

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.