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In 2014, Mordica Co. issued 300,000 of its 500,000 authorized shares of $10 par value common at $35 per share. In January 2015, Mordica repurchased 25,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had.
a) Prepare the journal entry to record the purchase of treasury stock by the cost method.
b) 9000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reisssuance by the cost method.
c) 9000 shares of treasury of stock are reissued at $27 per share. Prepare the journal entry to record the reissuance by the cost method.
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