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Question - Crane Company's balance sheet reported the following:
Capital stock outstanding, 4,000 shares, par $30 per share $120,000
Paid-in capital in excess of par 75,000
Retained earnings 90,000
The following transactions occurred this year:
(a) Purchased 180 shares of capital stock to be held as treasury stock, paying $55 per share.
(b) Sold 140 of the shares of treasury stock at $60 per share.
(c) Sold the remaining shares of treasury stock at $45 per share.
Required - Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.
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