Jacobsen Corporation had the following stockholders' equity accounts on January 1, 2010: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par Value $200,000, and Retained Earnings $100,000. In 2010, the company had the following treasury stock transactions.
Mar. 1 Purchased 5,000 shares at $9 per share.
June 1 Sold 1,000 shares at $12 per share.
Sept. 1 Sold 2,000 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $6 per share.


Jacobsen Corporation uses the cost method of accounting for treasury stock. In 2010, the company reported net income of $30,000.


Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2010, for net income.

Mar 1. Purchased 5,000 shares at $9 per share
Dr Common Treasury Stock 45,000
Cr Cash 45,000
June 1. Sold 1,000 shares at $12 per share
Dr Cash 12,000
Cr Common Treasury Stock 9,000
Cr Paid-In Capital from Sale of Treasury Stock 3,000
Sept 1. Sold 2,000 shares at $10 per share
Dr Cash 20,000
Cr Common Treasury Stock 18,000
Cr Paid-In Capital from Sale of Treasury Stock 2,000
Dec 1. Sold 1,000 shares at $6 per share
Dr Cash 6,000
Dr Paid-In Capital from Sale of Treasury Stock 3,000
Cr Common Treasury Stock 9,000