Reference no: EM131808402

Problem

On October 10, the stockholders' equity of Sherman Systems appears as follows:

Common stock-$10 par value, 82,000 shares authorized, issued, and outstanding $ 820,000
Paid-in capital in excess of par value, common stock 266,000
Retained earnings 944,000
Total stockholders' equity $ 2,030,000

1. Prepare journal entries to record the following transactions for Sherman Systems.

a. Purchased 6,000 shares of its own common stock at $35 per share on October 11.
b. Sold 1,250 treasury shares on November 1 for $41 cash per share.
c. Sold all remaining treasury shares on November 25 for $30 cash per share.