The equity section of Wilkins Homes' balance sheet at the beginning of the year is as follows:

During the year, Wilkins reissues 1,000 shares of treasury stock for $15 per share and then purchases an additional 1,600 shares of treasury stock at $16 per share.
Required
a. Prepare the journal entries to record the treasury stock transactions.
b. Prepare the equity section of Wilkins' balance sheet after the treasury stock transactions.

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Common stock, $1 par value, 100,000 shares issued Additional paid-in capital Retained earnings Treasury stock (2,000 shares) Total stockholders' equity 100,000 700,000 825,000 (20,000) $1,605,000