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

Common stock$10 par value, 72,000 shares authorized, issued, and outstanding	$	720,000
Paid-in capital in excess of par value, common stock	216,000
Retained earnings	864,000
Total stockholders equity	$	1,800,000

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

1a.	Purchased 5,000 shares of its own common stock at $25 per share on October 11.

1b.	Sold 1,000 treasury shares on November 1 for $31 cash per share.

1c.	Sold all remaining treasury shares on November 25 for $20 cash per share.

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