Common stock Assignment | College Homework Help

On October 10, the stockholders’ equity of Sherman Systems appears as follows.

Common stock–$10 par value, 76,000 shares
authorized, issued, and outstanding$760,000

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Paid-in capital in excess of par value, common stock 236,000

Retained earnings 896,000

Total stockholders’ equity$1,892,000

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

Purchased 5,400 shares of its own common stock at $29 per share on October 11.

Sold 1,100 treasury shares on November 1 for $35 cash per share.

Sold all remaining treasury shares on November 25 for $24 cash per share.

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