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

Common stock$10 par value, 5,800 shares authorized, issued, and outstanding	$ 960,000
Paid-in capital in excess of par value, common stock	336,000
Retained earnings	1,056,000
Total stockholders equity	$ 2,352,000

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

Purchased 7,400 shares of its own common stock at $49 per share on October 11.

Sold 1,600 treasury shares on November 1 for $55 cash per share.

Sold all remaining treasury shares on November 25 for $48 cash per share.

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