Treasury Shares On October 10, the capital of the shareholders (stockholders' equity) of Sherman Systems, Inc. it consisted of the following: Common stock–$10 par value, 72,000 shares authorized, issued, and outstanding $ 720,000 Paid-in capital in excess of par value, common stock 216,000 Retained earnings 864,000 Total stockholders’ equity $ 1,800,000 Prepare the daily entries to record the following transactions: October 11 – Sherman Systems purchased 5,000 of its own common stock at a price of $25 per share. November 1 – Sherman Systems sold 1,000 of its shares in treasury stock at a price of $31 per share. November 25 – Sherman Systems sold the remaining shares in treasury at a price of $20 per share.
Treasury Shares On October 10, the capital of the shareholders (stockholders' equity) of Sherman Systems, Inc. it consisted of the following: Common stock–$10 par value, 72,000 shares authorized, issued, and outstanding $ 720,000 Paid-in capital in excess of par value, common stock 216,000 Retained earnings 864,000 Total stockholders’ equity $ 1,800,000 Prepare the daily entries to record the following transactions: October 11 – Sherman Systems purchased 5,000 of its own common stock at a price of $25 per share. November 1 – Sherman Systems sold 1,000 of its shares in treasury stock at a price of $31 per share. November 25 – Sherman Systems sold the remaining shares in treasury at a price of $20 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Treasury Shares
On October 10, the capital of the shareholders (
|
Common stock–$10 par value, 72,000 shares authorized, issued, and outstanding |
$ |
720,000 |
|
Paid-in capital in excess of par value, common stock |
|
216,000 |
|
|
|
864,000 |
|
Total stockholders’ equity |
$ |
1,800,000 |
Prepare the daily entries to record the following transactions:
- October 11 – Sherman Systems purchased 5,000 of its own common stock at a price of $25 per share.
- November 1 – Sherman Systems sold 1,000 of its shares in
treasury stock at a price of $31 per share.
- November 25 – Sherman Systems sold the remaining shares in treasury at a price of $20 per share.
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