Reference no: EM133161314
Question - On October 10, the stockholders' equity section of Sherman Systems appears as follows.
Common stock-$10 par value, 5,800 shares authorized, issued, and outstanding $960,000
Paid-in capital in excess of par value, common stock 336,000
Retained earnings 1,056,000
Total stockholders' equity $2,352,000
Required -
1. Prepare journal entries to record the following transactions for Sherman Systems.
a. Purchased 7,400 shares of its own common stock at $49 per share on October 11.
b. Sold 1,600 treasury shares on November 1 for $55 cash per share.
c. Sold all remaining treasury shares on November 25 for $48 cash per share.
2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.