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.

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 $39 cash per share.

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