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

Common stock$10 par value, 94,000 shares authorized, issued, and outstanding	$ 940,000
Paid-in capital in excess of par value, common stock	326,000
Retained earnings	1,040,000
Total stockholders equity	$ 2,306,000

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

a. Purchased 7,200 shares of its own common stock at $47 per share on October 11.

b. Sold 1,550 treasury shares on November 1 for $53 cash per share.

c. Sold all remaining treasury shares on November 25 for $42 cash per share.

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