Exercise 13-13 (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, 85,000 shares authorized, issued, and outstanding	$ 850,000
Paid-in capital in excess of par value, common stock	281,000
Retained earnings	968,000
Total stockholders equity	$ 2,099,000

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

1. Purchased 6,300 shares of its own common stock at $38 per share on October 11.
2. Sold 1,325 treasury shares on November 1 for $44 cash per share.
3. Sold all remaining treasury shares on November 25 for $37 cash per share.

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

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

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

Revised Stockholders' Equity Section of Balance Sheet After October 11
Total contributed capital
Total
Total stockholders equity