11 Ex 7

On October 10, the stockholders' equity of Sherman Systems appears as follows Common stock-$10 par value, 89,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 890,000 301,000 1,000,000 $ 2,191,000 Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,700 shares of its own common stock at $42 per share on October 11 b. Sold 1,425 treasury shares on November 1 for $48 cash per share. c. Sold all remaining treasury shares on November 25 for $37 cash per share. Journal entry worksheet 2 Record the purchase of 6,700 shares of its own common stock for $42 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet 2 Record the reissue of 1,425 shares of the treasury stock for $48 cash per share. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 Record the reissue of the remaining shares of the treasury stock for $37 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal 2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase Revised Equity Section of Balance Sheet After October 11 | Total contributed capital Total Total stockholders' equity