Edwards Corporation reports the following information in its January 1, 2016, balance sheet:
Stockholders’ equity
Common stock, $10 par value, 100,000 shares authorized.... 50,000
Shares issued and outstanding ............... $500,000
Paid-in capital in excess of par value ............. 150,000
Retained earnings .................... 120,000
Total stockholders’ equity ................. $770,000
During 2016, Edwards was affected by the following accounting events:
1. Purchased 2,000 shares of treasury stock at $15 per share.
2. Reissued 1,200 shares of treasury stock at $18 per share.
3. Earned $72,000 of cash revenues.
4. Paid $41,000 of cash operating expenses.
Required
a. Provide journal entries to record these transactions.
b. Prepare the stockholders’ equity section of the year-end balance sheet.