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, 95,000 shares authorized, issued, and outstanding	$	950,000
Paid-in capital in excess of par value, common stock		331,000
Retained earnings		1,048,000
Total stockholders equity	$	2,329,000

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

Purchased 7,300 shares of its own common stock at $48 per share on October 11.

Sold 1,575 treasury shares on November 1 for $54 cash per share.

Sold all remaining treasury shares on November 25 for $43 cash per share.

Journal entry worksheet 2 Record the purchase of 7,300 shares of its own common stock for $48 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Treasury stock 350,400 Cash 350,400 Record entry Clear entry View general journal Journal entry worksheet Record the reissue of 1,575 shares of the treasury stock for $54 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Cash 85.050 Treasury stock Paid-in capital, treasury stock 75,600 9,450 Record entry Clear entry View general journal 2 Record the reissue of the remaining shares of the treasury stock for $43 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Cash Paid-in capital, treasury stock Retained earnings C. 246,175 9,450 Treasury stock 394,200 Record entry Clear entry View general journal