Mid America Amusements Corporation bad the following stockholders' equity on November 30:

On December 30, Mid America purchased 10,000 shares of treasury stock at \(\$ 9\) per share.

1. Journalize the purchase of the treasury stock, and prepare the stockholders' equity section of the balance sheet at December 31.

2. How many shares of common stock are outstanding after the purchase of treasury stock?

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STOCKHOLDERS' EQUITY Common stock, $5 par, 500,000 shares authorized, 50,000 shares issued..... $250,000 Paid-in capital in excess of par. 150,000 Retained earnings...... 490,000 Total stockholders' equity. $890,000