Exercise 11-12 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, 93,000 shares authorized, issued, and outstanding	$	930,000
Paid-in capital in excess of par value, common stock		321,000
Retained earnings		1,032,000
Total stockholders equity	$	2,283,000

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

1. Purchased 7,100 shares of its own common stock at $46 per share on October 11.
2. Sold 1,525 treasury shares on November 1 for $52 cash per share.
3. Sold all remaining treasury shares on November 25 for $41 cash per share.

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