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, 88,000 shares authorized, issued, and outstanding	$	880,000
Paid-in capital in excess of par value, common stock		296,000
Retained earnings		992,000
Total stockholders equity	$	2,168,000

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

Purchased 6,600 shares of its own common stock at $41 per share on October 11.

Sold 1,400 treasury shares on November 1 for $47 cash per share.

Sold all remaining treasury shares on November 25 for $36 cash per share.