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VAP Company's balance sheet shows:
Common stock, $20 par $4,000,000
Paid-in capital in excess of par 1,000,000
Retained earnings 800,000
Prepare journal entries to record the following transactions using the cost method.
(a) Bought 10,000 treasury shares of its own common stock at $30 a share.
(b) Sold 2,000 treasury shares at $31 a share.
(c) Sold 1,000 shares of treasury stock at $27 a share.
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