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

Common stock$10 par value, 5,425 shares authorized, issued, and outstanding	$ 910,000
Paid-in capital in excess of par value, common stock	311,000
Retained earnings	1,016,000
Total stockholders equity	$ 2,237,000

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

1. Purchased 6,900 shares of its own common stock at $44 per share on October 11.
2. Sold 1,475 treasury shares on November 1 for $50 cash per share.
3. Sold all remaining treasury shares on November 25 for $43 cash per share.

No	Transaction	General Journal	Debit	Credit
1	a.	Treasury stock	303,600
		Cash		303,600
2	b.	Cash	73,750
		Treasury stock		64,900
		Paid-in capital, treasury stock		8,850
3	c.	Cash	233,275
		Paid-in capital, treasury stocks

Revised Stockholders' Equity Section of Balance Sheet After October 11
Common stock, $10	$910,000
Paid-in capital in excess of par value, common	311,000
Total contributed capital	1,221,000
Retained earning
Total
Less: Cost of treasury stock
Total stockholders equity