Bentonite Adhesives Inc. engaged in the following transactions during the current year:
a. Repurchased 8,000 shares of its own $5 par common stock for $13 per share on January 14.
b. Sold 2,600 of the treasury shares to employees for $8 per share on January 31.
c. Repurchased 2,000 more shares of the $5 par common stock for $17 each on July 24.
d. Sold the remaining 5,400 shares from the January 14 purchase and 800 of the shares from the July 24 purchase to employees for $9 per share on August 1.

1. Prepare journal entries for each of these transactions.
2. Conceptual Connection Determine the effect on total stockholders’ equity for each of the four transactions.

  • CreatedSeptember 22, 2015
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