Answer and Explanation:
The journal entries are shown below:
On July 9
Treasury Stock A/c Dr. $2,520,000 ($42 × 60,000 shares)
To Cash A/c $2,520,000
(Being the reacquired shares are recorded)
On September 22
Cash A/c Dr. $2,295,000 ($51 × 45,000 shares)
To treasury stock $1,890,000 ($42 × 45,000 shares)
To Additional paid in capital A/c $405,000 ($2,295,000 - $1,890,000)
(Being the reacquired shares are recorded)
On November 23
Cash A/c Dr. $600,000 ($40 × 15,000)
Additional paid in capital A/c Dr. $30,000 (15,000 shares × $2)
To Treasury stock A/c Cr. $630,000
(Being the shares sold are recorded)
