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

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

Common stock-$10 par value, 76,000 shares

authorized, issued, and outstanding $ 760,000 Paid-in capital in excess of par value, common stock 236,000 Retained earnings 896,000 Total stockholders' equity $ 1,892,000

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

1. Purchased 5,400 shares of its own common stock at $29 per share on October 11.
2. Sold 1,100 treasury shares on November 1 for $35 cash per share.
3. Sold all remaining treasury shares on November 25 for $24 cash per share.