On October 10, the stockholders equity section 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.

Purchased 6,500 shares of its own common stock at $40 per share on October 11.

Sold 1,375 treasury shares on November 1 for $46 cash per share.

1. Sold all remaining treasury shares on November 25 for $39 cash per share.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.