Chapter 11, Problem 11.15E

Recording and Analyzing Treasury Stock Transactions

During the year the following selected transactions affecting stockholders’ equity occurred for Orlando Corporation:

1. a. Apr. 1 Repurchased 200 shares of the company’s own common stock at $20 cash per share.
2. b. Jun. 14 Sold 40 shares of the shares purchased on April 1 for $25 cash per share.
3. c. Sept. 1 Sold 30 shares of the shares purchased on April 1 for $15 cash per share.

Required:

1. 1. Provide the journal entries to record each of the transactions in (a) through (c).
2. 2. Describe the impact, if any, that these transactions have on the income statement.