6 On October 10, the stockholders\' equity of Sherman Systems appears as follows

Question

6 On October 10, the stockholders' equity of Sherman Systems appears as follows 10 issued, and outstanding s 880,00e 296,800 992,080 Retained Total $2,168,880 1. Prepare journal entries to record the following transactions for Sherman Systems a. Purchased 6,600 shares of its own common stock at $41 per share on October 11 b. Sold 1,400 treasury shares on November 1 for $47 cash per share c. Sold all remaining treasury shares on November 25 for $36 cash per share. Journal entry worksheet 2 Record the purchase of 6,600 shares of its own common stock for $41 cash per share. Note: Enter d

Explanation / Answer

1) Journal entry Accounting titles & Explanations Debit Credit a. Treasury stock 270600 cash (6,600*41) 270,600 b. cash (1400*47) 65800 Treasury stokc (1400*41) 57400 paid in capital in excess of par-TS 8400 c. cash (5200*36) 187200 paid in capital in excess of par-TS 8,400 Retained earnings 17,600 Treasury stock (5200*41) 213200 2) Revised Equity section common stock 880,000 paid in capital in excess of par 296,000 total contributed capital 1,176,000 add retained earnings 992000 total contributed capital & retained earnings 2,168,000 less treasury stock -270,600 total stockholders equity 1,897,400

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