Question
On October 10, the stockholders equity of Sherman Systems appears as follows. Common stock$10 par value, 95,000 shares authorized, issued, and outstanding $ 950,000 Paid-in
On October 10, the stockholders equity of Sherman Systems appears as follows.
Common stock$10 par value, 95,000 shares authorized, issued, and outstanding | $ | 950,000 | |
Paid-in capital in excess of par value, common stock | 331,000 | ||
Retained earnings | 1,048,000 | ||
Total stockholders equity | $ | 2,329,000 | |
1. Prepare journal entries to record the following transactions for Sherman Systems.
Purchased 7,300 shares of its own common stock at $48 per share on October 11.
Sold 1,575 treasury shares on November 1 for $54 cash per share.
Sold all remaining treasury shares on November 25 for $43 cash per share.
1-Record the purchase of 7,300 shares of its own common stock for $48 cash per share.
2-Record the reissue of 1,575 shares of the treasury stock for $54 cash per share.
3-Record the reissue of the remaining shares of the treasury stock for $43 cash per share.
|
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started