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

Common stock$10 par value, 87,000 shares authorized, issued, and outstanding	$	870,000
Paid-in capital in excess of par value, common stock		291,000
Retained earnings		984,000
Total stockholders equity	$	2,145,000

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

1. Purchased 6,500 shares of its own common stock at $40 per share on October 11.
2. Sold 1,375 treasury shares on November 1 for $46 cash per share.
3. Sold all remaining treasury shares on November 25 for $35 cash per share.

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