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