Exercise 11-12 Recording and reporting treasury stock transactions LO P3 On October 10, the stockholders...
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Exercise 11-12 Recording and reporting treasury stock transactions LO P3
On October 10, the stockholders equity of Sherman Systems appears as follows.
| Common stock$10 par value, 93,000 shares authorized, issued, and outstanding | $ | 930,000 | |
| Paid-in capital in excess of par value, common stock | 321,000 | ||
| Retained earnings | 1,032,000 | ||
| Total stockholders equity | $ | 2,283,000 | |
1. Prepare journal entries to record the following transactions for Sherman Systems.
- Purchased 7,100 shares of its own common stock at $46 per share on October 11.
- Sold 1,525 treasury shares on November 1 for $52 cash per share.
- Sold all remaining treasury shares on November 25 for $41 cash per share.
2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
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