At the end of 20X8, Minnow Reserves Corp. reported the following in shareholders’ equity:

The company had treasury stock transactions in the following sequence during 20X9:
1. Purchased 100,000 common shares as treasury stock at $8 per share.
2. Reissued 40,000 treasury shares at $9 per share.
3. Reissued 50,000 treasury shares at $4 per share.

Required:
1. Prepare journal entries for the treasury stock transactions.
2. Calculate the balances in each equity account, after the effects of the transactions in requirement 1.

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Preferred shares, no par value; authorized, unlimited shares; issued, 50,000 shares Common shares, no par value; authorized, unlimited shares; issued, 1,500,000 shares, outstanding, 1,450,000 shares Contributed capital on treasury stock transactions Retained earnings Treasury stock, 50,000 common shares $1,250,000 3,000,000 10,000 2,600,000 (250,000)