On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 720,000 216,000 864,000 $ 1,800,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 13-13 (Static) Recording and reporting treasury stock transactions LO P3
On October 10, the stockholders' equity section of Sherman Systems appears as follows.
Common stock-$10 par value, 72,000 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 5,000 shares of its own common stock at $25 per share on October 11.
b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
c. Sold all remaining treasury shares on November 25 for $24 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.
$ 720,000
216,000
864,000
$ 1,800,000
Required 1 Required 2
Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Revised Stockholders' Equity Section of Balance Sheet After October 11
Total contributed capital
Total
Total stockholders' equity
Transcribed Image Text:Exercise 13-13 (Static) Recording and reporting treasury stock transactions LO P3 On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 72,000 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 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $24 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. $ 720,000 216,000 864,000 $ 1,800,000 Required 1 Required 2 Prepare the stockholders' equity section after the October 11 treasury stock purchase. Revised Stockholders' Equity Section of Balance Sheet After October 11 Total contributed capital Total Total stockholders' equity
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