Exercise $11-14($Algo$)$ Recording and reporting treasury stock transactions LO P$3$

On October $10,$ the stockholders' equity section of Sherman Systems appears as follows.

Common stock$-$ $$10$ par value, $85,000$ shares authorized, issued, and outstanding

Paid$-$in capital in excess of par value, common stock Retained earnings

Total stockholders' equity

$$850,000$

$281,000$

$968,000$

$$2,099,000$

Prepare journal entries to record the following transactions for Sherman Systems.

a$.$ Purchased $6,300$ shares of its own common stock at $$38$ per share on October $11.$

b$.$ Sold $1,325$ treasury shares on November $1$ for $$44$ cash per share.

c$.$ Sold all remaining treasury shares on November $25$ for $$33$ cash per share.

Prepare the stockholders' equity section after the October $11$ treasury stock purchase.

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Required $1$

Prepare journal entries to record the following transactions for Sherman Systems.

a$.$ Purchased $6,300$ shares of its own common stock at $$38$ per share on October $11.$

b$.$ Sold $1,325$ treasury shares on November $1$ for $$44$ cash per share.

c$.$ Sold all remaining treasury shares on November $25$ for $$33$ cash per share.

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Journal entry worksheet

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