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, $80,000$ shares authorized, issued, and outstanding $ $800,000$

Paid$-$in capital in excess of par value, common stock $256,000$

Retained earnings $928,000$

Total stockholders$$ equity $ $1,984,000$

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

Purchased $5,800$ shares of its own common stock at $$33$ per share on October $11.$

Sold $1,200$ treasury shares on November $1$ for $$39$ cash per share.

Sold all remaining treasury shares on November $25$ for $$32$ cash per share.

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