pter 13 HW Part lI G Saved 5 On October 10 the stockholders

pter 13 HW Part lI G Saved 5 On October 10, the stockholders\' equity of Sherman Systems appears as follows: Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders\' equity s 720,000 216,000 864,000 $1,800,000 Book Ask 1. Prepare journal entries to record the following transactions for Sherman Systems a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. Print c. Sold all remaining treasury shares on November 25 for $20 cash per share. erences View transaction list

Solution

a Treasury Stock 125000 =5000*25          Cash 125000 b Cash 31000 =1000*31        Treasury Stock 25000 =1000*25        Paid-In capital, treasury stock 6000 c Cash 80000 =4000*20 Paid in Capital, Treasury Stock 6000 Retained Earnings. 14000        Treasury Stock 100000 =4000*25 2 Common stock 720000 Paid-in capital in excess of par value, common stock 216000 Total contributed capital 936000 Retained Earnings 864000 Total 1800000 Less: Cost of treasury stock -125000 Total stockholders equity 1675000