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On October 10, the stockholders equity of Sherman Systems appears as follows. On October 10, the stockholders' equity of Sherman Systems appears as follows Common
On October 10, the stockholders equity of Sherman Systems appears as follows.
On October 10, the stockholders' equity of Sherman Systems appears as follows Common stock-$10 par value, 96,000 shares $ 960,000 336,000 1,056,000 $ 2,352,000 authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems a. Purchased 7,400 shares of its own common stock at $49 per share on October 11 b. Sold 1,600 treasury shares on November 1 for $55 cash per share c. Sold all remaining treasury shares on November 25 for $44 cash per share Answer is complete but not entirely correct. Transaction General Journal Debit Credit Treasury stock 362,600 Cash 362,600 Cash 88,000 Treasury stock Paid-in capital, treasury stock 78,400 9,600 Cash Paid-in capital, treasury stock Retained earnings 325,600 9,600 27,400 C. 78,400 Treasury stock 2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase. Answer is not complete. Revised Equity Section of Balance Sheet After October 11 Total contributed capital Total Total stockholders' equityStep by Step Solution
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