Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 10, the stockholders equity of Sherman Systems appears as follows. Common stock$10 par value, 85,000 shares authorized, issued, and outstanding $ 850,000 Paid-in

On October 10, the stockholders equity 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 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,300 shares of its own common stock at $38 per share on October 11. Sold 1,325 treasury shares on November 1 for $44 cash per share. Sold all remaining treasury shares on November 25 for $33 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 6,300 shares of its own common stock at $38 per share on October 11. b. Sold 1,325 treasury shares on November 1 for $44 cash per share. c. Sold all remaining treasury shares on November 25 for $33 cash per share.

Show less

Journal entry worksheet

  • Record the purchase of 6,300 shares of its own common stock for $38 cash per share.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
a.

Revised Equity Section of Balance Sheet After October 11
Total contributed capital 0
Total 0
Total stockholders equity $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EAuditing Fundamentals Virtual Communication And Remote Auditing

Authors: J.P. Russell, Shauna Wilson

1st Edition

0873898486, 978-0873898485

More Books

Students also viewed these Accounting questions

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago