a

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

Common stock$10 par value, 75,000 shares authorized, issued, and outstanding	$	750,000
Paid-in capital in excess of par value, common stock		231,000
Retained earnings		888,000
Total stockholders equity	$	1,869,000

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

1. Purchased 5,300 shares of its own common stock at $28 per share on October 11.
2. Sold 1,075 treasury shares on November 1 for $34 cash per share.
3. Sold all remaining treasury shares on November 25 for $23 cash per share.

148.400 Treasury stock Cash 148.400 b. 36.550 Cash Paid-in capital, treasury stock Treasury stock 6.450 30.100 Cash 97.175 Paid-in capital, treasury stock Retained earnings 2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase. X Answer is complete but not entirely correct. Revised Equity Section of Balance Sheet After October 11 Common stock, $10 par $ Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total 750.000 231.000 981,000 888.000 1.889.000 30.100 X 1.888.900 Less: Cost of treasury stock Total stockholders' equity