ACCOUNTING test 3 chp 10,11, 14,13,17 Revlew Question 13 (of 15) Score This Ques

Question

ACCOUNTING test 3 chp 10,11, 14,13,17 Revlew Question 13 (of 15) Score This Question 13. On October 10, the stockholders' equity of Sherman Systems appears as follows Common stock-$10 par value, 81,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders equity $ 810,000 261,000 936000 S 2,007,000 1. Prepare journal entries to record the following transactions for Sherman Syste a. Purchased 5,900 shares of its own common stock at $34 per share on October 11 b. Sold 1.225 treasury shares on November 1 for $40 cash per share c. Sold all remaining treasury shares on November 25 for $29 cash per share View transaction list ? Type here to search

Explanation / Answer

Answer:

a)

Event

Description

Debit $

Credit $

a

Treasury stock, Common (5900x 34)

200600

Cash

200600

(To record the purchase of 5900 share at the
price 34)

b

Cash (1225*40)

49000

Treasury stock, Common (1225x 34)

41650

Paid in capital-treasury stock (1225x6)

7350

(To record the sale of 1225 treasury share at the price 40)

c

Cash (4675*29)

135575

Paid in capital-treasury stock

7350

Retained earning

16025

Treasury stock, Common (4675*34)

158950

(To record the sale of 4675 treasury share at the price 29)

__________________________________________________

b)

revised equity section of balance sheet after October -11

common stock ,10 par value, 81000 authorized issued
and outstanding,5900 shares in trsury

810,000

Paid-in capital in excess of par value, common stock

261000

Total Paid-in Capital

1,071,000

Add: Retained Earnings ,200600 restricted by treasury stock

936000

Total

2,007,000

Less: Cost of treasury stock

-200600

Total stockholders' equity

1,806,400

Event

Description

Debit $

Credit $

a

Treasury stock, Common (5900x 34)

200600

Cash

200600

(To record the purchase of 5900 share at the
price 34)

b

Cash (1225*40)

49000

Treasury stock, Common (1225x 34)

41650

Paid in capital-treasury stock (1225x6)

7350

(To record the sale of 1225 treasury share at the price 40)

c

Cash (4675*29)

135575

Paid in capital-treasury stock

7350

Retained earning

16025

Treasury stock, Common (4675*34)

158950

(To record the sale of 4675 treasury share at the price 29)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.