Reference no: EM132524701
Question - On October 10, the stockholders' equity of Sherman Systems appears as follows.
Common stock-$10 par value, 77,000 shares authorized, issued, and outstanding $ 770,000
Paid-in capital in excess of par value, common stock 241,000
Retained earnings 904,000
Total stockholders' equity $ 1,915,000
Required -
1. Prepare journal entries to record the following transactions for Sherman Systems.
Purchased 5,500 shares of its own common stock at $30 per share on October 11.
Sold 1,125 treasury shares on November 1 for $36 cash per share.
Sold all remaining treasury shares on November 25 for $25 cash per share.
2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
a. Purchased 5,500 shares of its own common stock at $30 per share on October 11.
b. Sold 1,125 treasury shares on November 1 for $36 cash per share.
c. Sold all remaining treasury shares on November 25 for $25 cash per share.
Info for the stockholders' equity section after the October 11 treasury stock purchase.
1. Revised Equity Section of Balance Sheet After October 11
2. Total contributed capital
3. Total