please answer a-c and explain Common stock-$10 par value, 83,000 shares authoriz

Question

please answer a-c and explain

Common stock-$10 par value, 83,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 830,000 271,000 952,000 $2,053,000 Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,100 shares of its own common stock at $36 per share on October 11. b. Sold 1,275 treasury shares on November 1 for $42 cash per share. c. Sold all remaining treasury shares on November 25 for $31 cash per share.

Explanation / Answer

TR General Journal Debit Credit a) Treasury stock 219600 Cash (6,100*36) 219,600 b) Cash (1,275*42) 53550 Treasury stock (1,275*36) 45900 Paid in capital in excess of Treasury stock (1275*6) 7650 c) Cash (4,825*31) 149575 paid in capital in excess of treasury stock 7,650 Retained earnings 16,475 Treasury stock (4,825*36) 173700

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