On October 10, the stockholders' equity section of Sherman Systems appears as follows.Common stock-$10 par value, 5,500 shares authorized, issued, and outstandingPaid-in capital in excess of par value, common stockRetained earningsTotal stockholders' equity1. Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 7,000 shares of its own common stock at $45 per share on October 11.b. Sold 1,500 treasury shares on November 1 for $51 cash per share.c. Sold all remaining treasury shares on November 25 for $44 cash per share.2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 7,000 shares of its own common stock at $45 per share on October 11.b. Sold 1,500 treasury shares on November 1 for $51 cash per share.c. Sold all remaining treasury shares on November 25 for $44 cash per share.$ 920,000316,0001,024,000$ 2,260,000Show less Required 1 Required 2Prepare the stockholders' equity section after the October 11 treasury stock purchase.Revised Stockholders' Equity Section of Balance Sheet After October 11Total contributed capitalTotalTotal stockholders' equity

STATEMENT OF SHAREHOLDERS EQUITY Statement of Shareholders Equity is also Known as Changes in Stockholders Equity. Statement of Shareholders Equity is explains the changes in a company's Share Capital, Accumulated Reserve & Surplus and Retained Earnings over the Reporting Period. Statement of Shareholders Equity is a financial document of a company issues as part of its Balance Sheet.Requirement #1 :— Statement Showing Journal Entries Date Account Title & Explaination Debit Credit #A Treasury stock $315,000 Cash (7,000 * $45) $315,000 #B Cash (1,500 * $51) $76,500 Treasury stock (1,500 * $45) $67,500 Paid-in capital, Treasury stock (1,500 * $6) $9,000 #C Cash {7,000-1,500) * $44} $242,000 Paid-in capital, Treasury stock $5,500 Treasury stock {7,000-1,500) * $45} $247,500Requirement #2 :— Statement Showing Statement of Stockholders Equity Revised stockholders' equity section of Balance Sheet after October 11 Common stock - $10 par value $920,000 Paid-in capital in excess of par value $316,000 Total contributed capital $1,236,000 Retained earnings $1,024,000 Total $2,260,000 Less :— Cost of treasury stock ($315,000) Total stockholders' equity $1,945,000