Exercise 11-10 Recording and reporting treasury stock transactions LO P3

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

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

a. Purchased 5,200 shares of its own common stock at $27 per share on October 11.

b. Sold 1,050 treasury shares on November 1 for $33 cash per share.

c. Sold all remaining treasury shares on November 25 for $22 cash per share.

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

Common stock-$10 par value, 74,0ee shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 740,000 226,00e 880,000 $1,846,e00 Journal entry worksheet 2 3 Record the purchase of 5,200 shares of its own common stock for $27 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 3 Record the reissue of 1,050 shares of the treasury stock for $33 cash per share. Note: Enter debits before credits Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet 2 3 Record the reissue of the remaining shares of the treasury stock for $22 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Revised Equity Section of Balance Sheet After October 11 Total contributed capital Total Total stockholders' equity