E15-7B (Effect of Treasury Stock Transactions on Financials) Regis One Company has outstanding 10,000 shares of $10 par common stock which had been issued at $42 per share. Regis One then entered into the following transactions. 1. Purchased 1,000 treasur

E15-7B (Effect of Treasury Stock Transactions on Financials) Regis One Company has outstanding 10,000 shares of $10 par common stock which had been issued at $42 per share. Regis One then entered into the following ransactions.

1. Purchased 1,000 treasury shares at $45 per share.

2. Resold 100 of the treasury shares at $42 per share.

3. Resold 200 of the treasury shares at $47 per share.

Instructions

Use the following code to indicate the effect each of the three transactions has on the financial statement

categories listed in the table below, assuming Regis One Company uses the cost method: I  Increase;

D  Decrease; NE  No effect.

Stockholders’ Paid-in Retained Net

# Assets     Liabilities            Equity Capital Earnings Income

1

2

3

E15-8B (Preferred Stock Entries and Dividends) Jedren Corporation has 30,000 shares of $75 par