Solved by verified expert :Treasury Stock TransactionsOn its December 31, 2016 balance sheet, ABC Co. reported its stockholders equity as follows:Common stock – $5 par value, 100,000 shares authorized,50,000 shares issues and outstandingPaid in Capital in Excess of Par Value, CommonRetained EarningsTotal Stockholders’ Equity$250,000125,000400,000$775,000During 2017, the following transactions occurred:Feb 2Mar 8Apr 10Reacquired 2,500 shares at $7 per share.Sold 500 shares at $6 per share.Sold 1,200 shares at $8 per share.Net income for 2017 amounted to $80,000.a.In good form, prepare the journal entries for the three transactions (show yourcalculations for the numbers arrived at in your journal entries)b. Compute the amount of total contributed capital to be reported on the December 31,2017 balance sheet. (show your calculation)Stockholders’ Equity Section of Balance SheetPrepare in good form the stockholders’ equity section of the balance sheet from the followingselected accounts and balances taken from the adjusted trial balance of XYZ Co as ofDecember 31, 2016.Common Stock – $10 par, 100,000 sharesauthorized, 55,000 shares issued andoutstandingPreferred Stock, $100 par value, 9%cumulative, 20,000 shares authorized, 4,000shares issued and outstandingPaid in Capital in Excess of Par Value,PreferredPaid in Capital in Excess of Par Value,CommonRetained Earnings??15,000400,00090,000

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