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

Common stock—$10 par value, 72,000 shares authorized, issued, and outstanding ......................... $ 720,000
Paid-in capital in excess of par value, common stock ................................................................................. 216,000
Retained earnings ............................................................................................................................................ 864,000
Total stockholders’ equity .......................................................................................................................... $1,800,000

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

a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. 

b. Sold 1,000 treasury shares on November 1 for $31 cash per share. 

c. Sold all remaining treasury shares on November 25 for $20 cash per share. 

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