An Inexperienced Accountant for Dudley Corporation Made the Following Entries

An inexperienced accountant for Dudley Corporation made the following entries. $\begin{array}{llr} \text { July 1 } &\text { Cash } &180,000\\& \text { Common Stock } &&180,000\\ &\text {(Issued 25,000 shares of common stock, } &\\ &\text { par value \( \$ 6 \) per share) } &\\\\ \text { Sept. 1 } & \text { Common Stock } &24,000\\& \text { Retained Earnings} &16,000\\& \text { Cash } &&40,000\\ &\text { (Purchased 4,000 shares issued on July 1 for the } &\\& \text { treasury at \( \$ 10 \) per share) } &\\\end{array}$
Instructions
On the basis of the explanation for each entry prepare the entry that should have been made for the transactions.