Discount Center Furniture, Inc. completed the following treasury stock transactions in 2014:
Dec. 1 Purchased 1,400 shares of the company’s $ 1 par value common stock as treasury stock, paying cash of $ 5 per share.
15 Sold 400 shares of the treasury stock for cash of $ 8 per share.
20 Sold 800 shares of the treasury stock for cash of $ 2 per share. (Assume the balance in Paid- In Capital From Treasury Stock Transactions on December 20 is $ 2,000.)
1. Journalize these transactions. Explanations are not required.
2. How will Discount Center Furniture, Inc. report treasury stock on its balance sheet as of December 31, 2014?