From the following information, reconstruct the journal entries that were made by Rivers Corporation during 2013.

*Includes net income of $40,000 for 2013. There were no dividends. Assume that revenues and expenses were closed to a temporary account, Income Summary. Use this account to complete the closing process. At the beginning of 2013, 2,500 shares of common stock (issued when the company was formed) were purchased for $90,000; these were retired later in the year. The cost method is used to record treasury stock transactions. Treasury stock purchased during the year was purchased at a cost of $50 per share.

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Dec. 31, 2013 Dec. 31, 2012 Amount Shares Amount Shares Common stock Paid-in capital in excess of par. Paid-in capital from treasury stock Retained earnings Treasury stock $175,000 7,000 $150,000 6,000 54,250 1,000 76,500* 15,000 36,000 200 49,000 300