The difference between the cost, par and constructive retirement method.

For the cost and par value methods, prepare journal entry examples of each using the following information:

*1000 shares of $5 par stock were sold for $7.

*500 shares were repurchased at a price of $6.

*The 500 shares were later sold for $3500.

For the constructive retirement method prepare the following journal entry: The shares were retired.