On April 2 a corporation purchased for cash 7,000 shares of its own $12 par common stock at $27 per share. It sold 4,000 of the treasury shares at $30 per share on June 10. The remaining 3,000 shares were sold on November 10 for $23 per share. a.  Journalize the entries for the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank. Apr. 2   - Select - - Select -     - Select - - Select -   b.  Journalize the entries for the sale of the stock. If an amount box does not require an entry, leave it blank. June 10   - Select - - Select -     - Select - - Select -     - Select - - Select - Nov. 10   - Select - - Select -     - Select - - Select -     - Select - - Select -

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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.