Chapter 12, Problem 12.14EX

(a)

To determine

Treasury stock: The shares which were reacquired or bought back by the company, but not formally retired from the corporation stock, are called as treasury stock. The re-acquisition of issued shares, decreases the number of outstanding shares.

To journalize: The transactions occurred on July 9, September 22, and November 23

(b)

To determine

Paid-in capital: This is the total of stock capital contributed by investors, and so, sometimes referred to as contributed capital. It includes preferred stock capital issued, common stock capital issued, and capital issued by the way of sale of treasury stock.

To determine: The balance in Paid-in Capital from Sale of Treasury Stock due to treasury stock transactions

(c)

To determine

To discuss: The reason, for which Incorporation M has purchased the treasury stock