On October 10, the stockholders’ equity section of Sherman Systems appears as follows.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 $24 cash per share.
2. Prepare the stockholders’ equity section after the October 11 treasury stock purchase.

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