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On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$18 par value, 87,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,500 shares of its own common stock at $40 per share on October 11. b. Sold 1,375 treasury shares on November 1 for $46 cash per share. c. Sold all remaining treasury shares on November 25 for $39 cash per share. 250 $350 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. $ 870,000 291,000 984,000 $ 2,145,000

On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$18 par value, 87,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,500 shares of its own common stock at $40 per share on October 11. b. Sold 1,375 treasury shares on November 1 for $46 cash per share. c. Sold all remaining treasury shares on November 25 for $39 cash per share. 250 $350 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. $ 870,000 291,000 984,000 $ 2,145,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$18 par value, 87,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare Journal entries to record the following transactions for Sherman Systems. a. Purchased 6,500 shares of its own common stock at $40 per share on October 11. b. Sold 1,375 treasury shares on November 1 for $46 cash per share. c. 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. $ 870,000 291,000 984,000 $ 2,145,000
Transcribed Image Text:On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$18 par value, 87,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare Journal entries to record the following transactions for Sherman Systems. a. Purchased 6,500 shares of its own common stock at $40 per share on October 11. b. Sold 1,375 treasury shares on November 1 for $46 cash per share. c. 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. $ 870,000 291,000 984,000 $ 2,145,000
Journal entry worksheet 1 Record the purchase of 6,500 shares of its own common stock for $40 cash per share. Transaction: a Note: Enter debles befornicrediti. Record actry < 1 2 2 Journal entry worksheet Transaction G 3 3 Note: ter gebits before credits Record entry General Joumal Clear Getry Record the reissue of the remaining shares of the treasury stock for $39 cash per share. General Joumal Debit Clear entry Credit Debit View general Journal Required 2 > Credit View general Journal Required 2 > > > Journal entry worksheet < 1 12 Record the reissue of 1,375 shares of the treasury stock for $46 cash per share. Note: Enter debits defere credits Transaction b. Record entry 3 General Joural Required 1 Required 2 Clear entry Debit < Required 1 Credit View general journal Complete this question by entering your answers in the tabs below. Required 2 > Prepare the stockholders equity section after the October 11 treasury stock purc Revised Stockholders Equity Section of Balance Sheet After October 11 Common stock. $10 par Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total Less: Cost of treasury stock Total stockholders equity $ ہے O U > 0
Transcribed Image Text:Journal entry worksheet 1 Record the purchase of 6,500 shares of its own common stock for $40 cash per share. Transaction: a Note: Enter debles befornicrediti. Record actry < 1 2 2 Journal entry worksheet Transaction G 3 3 Note: ter gebits before credits Record entry General Joumal Clear Getry Record the reissue of the remaining shares of the treasury stock for $39 cash per share. General Joumal Debit Clear entry Credit Debit View general Journal Required 2 > Credit View general Journal Required 2 > > > Journal entry worksheet < 1 12 Record the reissue of 1,375 shares of the treasury stock for $46 cash per share. Note: Enter debits defere credits Transaction b. Record entry 3 General Joural Required 1 Required 2 Clear entry Debit < Required 1 Credit View general journal Complete this question by entering your answers in the tabs below. Required 2 > Prepare the stockholders equity section after the October 11 treasury stock purc Revised Stockholders Equity Section of Balance Sheet After October 11 Common stock. $10 par Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total Less: Cost of treasury stock Total stockholders equity $ ہے O U > 0
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