Common stock$10 par value, 89,000 shares authorized, issued, and outstanding	$	890,000
Paid-in capital in excess of par value, common stock		301,000
Retained earnings		1,000,000
Total stockholders equity	$	2,191,000

Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

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. Answer is complete and correct. No Transaction General Journal Debit Credit 1 a. 281,400 Treasury stock Cash 281,400 2 b 68,400 o Cash Treasury stock Paid-in capital, treasury stock 59,850 8,550 3 C Cash Retained earnings Paid-in capital, treasury stock Treasury stock 195,175 17,825 8,550 221,550 Revised Equity Section of Balance Sheet After October 11 Total contributed capital 0 Total Total stockholders' equity $ 0