Exercise $11-13($Algo$)$ Recording and reporting treasury stock transactions LO P$3$

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

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 journal entries to record the following transactions for Sherman Systems.

Purchased $6,700$ shares of its own common stock at $$42$ per share on October $11.$

Sold $1,425$ treasury shares on November $1$ for $$48$ cash per share.

Sold all remaining treasury shares on November $25$ for $$41$ cash per share.

Prepare the stockholders' equity section after the October $11$ treasury stock purchase.

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 $$41$ cash per share.

Prepare the stockholders' equity section after the October $11$ treasury stock purchase.

Revised Stockholders' Equity Section of Balance Sheet After October $11$

Total contributed capital $0$

Total $0$

Total stockholders$$ equity