Exercise 11-13 (Algo) Recording and reporting treasury stock transactions LO P3 On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 4,825 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 830,000 271,000 952,000 $ 2,653,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,100 shares of its own common stock at $36 per share on October 11. b. Sold 1,275 treasury shares on November 1 for $42 cash per share. c. Sold all remaining treasury shares on November 25 for $35 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,100 shares of its own common stock at $36 per share on October 11. b. Sold 1,275 treasury shares on November 1 for $42 cash per share. c. Sold all remaining treasury shares on November 25 for $35 cash per share. Show less Transaction General Journal Credit No 1 Debit 219,600 a. Treasury stock Cash 219,600 2 b. 53,550 Cash Treasury stock Paid-in capital, treasury stock 45,900 7,650 3 C. Cash Paid-in capital, treasury stock Retained earnings Treasury stock 149,575 X 7,650 X 16,475 X x 173,700