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Question 1) On June 30, 2020, Pier5 Inc. issued 500 shares of $1 common stock for $15 per share. On June 30, 2020, Pier5 Inc. reacquired 50 shares of common stock at $12 per share and immediately retired the shares. On December 15, 2020, Pier5 Inc. reacquired 100 shares of common stock at $17 per share and immediately retired the shares. By what amount did retained earnings decrease as a result of the reacquisition of common stock on December 15, 2020?
Question 2) Harlee Inc. has 60,000 shares of $5 par common stock outstanding at the beginning of the year 2020. Prepare en- tries for the following transactions affecting stockholders' equity. Assume Paid-in Capital-Treasury Stock has a zero beginning balance.
a. January 15, 2020: Purchased common stock as treasury shares, 2,000 shares at $20.
b. June 15, 2020: Sold common treasury stock, 800 shares at $1
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