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

Question

On October 10, the stockholders' equity of Sherman Systems appears as follows Common stock-$10 par value, 90,860 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders equity $ 900,889 366,800 1,008,0e86 5 2,214,880 1. Prepare journal entries to record the following transactions for Sherman Systems a. Purchased 6,800 shares of its own common stock at $43 per share on October 11. b. Sold 1,450 treasury shares on November 1 for $49 cash per share c. Sold all remaining treasury shares on November 25 for $38 cash per share View transaction list Journal entry worksheet Record the purchase of 6,800 shares of its own common stock for $43 cash per share. Note: Enter debits before credits. Debit Credit

Explanation / Answer

a Treasury stock 292400 =6800*43          Cash 292400 b Cash 71050 =1450*49      Treasury stock 62350 =1450*43      Paid in capital from sale of treasury stock 8700 c Cash 203300 =(6800-1450)*38 Paid in capital from sale of treasury stock 8700 Retained earnings 18050      Treasury stock 230050 =(6800-1450)*43

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