(solution) On October 10, the stockholders' equity of Sherman Systems

(solution) On October 10, the stockholders' equity of Sherman Systems

On October 10, the stockholders? equity of Sherman Systems appears as follows:

   

     
  Common stock?$10 par value, 82,000 shares authorized, issued, and outstanding $ 820,000  
  Paid-in capital in excess of par value, common stock   266,000  
  Retained earnings   944,000  
 

 

 

  Total stockholders? equity $ 2,030,000  
 

 

 

 

  

1.

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

   
  a.

 Purchased 6,000 shares of its own common stock at $35 per share on October 11.

  b.  Sold 1,250 treasury shares on November 1 for $41 cash per share.
  c.

 Sold all remaining treasury shares on November 25 for $30 cash per share.

Date
Title of account
11-Oct Treasury Stock
Cash Debit
Credit
$
210,000
$
210,000 1-Nov Cash
Treasury Stock
Paid in capital in excess of par – Treasury Stock $ 25-Nov Cash
Paid in capital in excess…