Reference no: EM133171288

Question - On October 10, the stockholders' equity section of Sherman Systems appears as follows.

Common stock-$10 par value, 4,450 shares authorized, issued, and outstanding $780,000

Paid-in capital in excess of par value, common stock 246,000

Retained earnings 912,000

Total stockholders' equity $ 1,938,000

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

1. Purchased 5,600 shares of its own common stock at $31 per share on October 11.

2. Sold 1,150 treasury shares on November 1 for $37 cash per share.

3. Sold all remaining treasury shares on November 25 for $30 cash per share.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.