Exercise 13-10 Recording and reporting treasury stock transactions LO P3

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

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

a. Purchased 5,700 shares of its own common stock at $32 per share on October 11.

b. Sold 1,175 treasury shares on November 1 for $38 cash per share.

c. Sold all remaining treasury shares on November 25 for $27 cash per share.

2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Common stock-$10 par value, 79,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings $790,000 251,000 920,00e $ 1,961,000 Total stockholders' equity