Question: I need help with my accounting exercise, I have the question from the book and the paper to answer it. On October 10, the stockholders'
I need help with my accounting exercise, I have the question from the book and the paper to answer it.




On October 10, the stockholders' equity of Sherman Systems appears as follows: Exercise 13-10 Recording and reporting treasury stock transactions P3 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.... $ 720,000 216.000 864.000 $1.800.000 Chapter 13 Accounting for Corporations 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. c. Sold all remaining treasury shares on November 25 for $20 cash per share. 2. Explain how the company's equity section changes after the October 11 treasury stock purchase, and prepare the revised equity section of its balance sheet at that date. Dr. Retained 000 Exercise 13-10 RECORDING AND REPORTING TREASURY STOCK TRANSACTIONS ONO ROBERTO THE TO R TLITY MANSISTO RS AS FOLLOW Common stock - S10 par value, 72.000 shares authorized issued, and outstanding 5720000 Paid-in capital in excess of par value, common stock 216.000 Total paid in capital Retained carnings 864,000 Total stockholders' equity $1,800,000 Note: Use these T-accounts through out the problem to assist you in preparing the y Common Stock PIC-CS Retained Farnings 720,000 216,000 864,000 Stockholders' Equity section of the balance October 11: Sherman Systems purchased 5,000 shares of its own common stock at $25 per share DEBIT ACCOUNT TITLE CREDIT DATE Account title & its balance must be added STOCKHOLDERS' EQUITY AFTER THE OCTOBER 11 TRANSACTION S 720,000 216,000 Common stock - $10 par value, 72.000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Total paid-in capital Retained earings sheet each 864,000 time Total stockholders' equity her 1: Sherman Systems sold 1,000 treasury shares for $31 cash per share. November 1: She DATE ACCOUNT TITLE DEBIT CREDIT STOCKHOLDERS' EQUITY AFTER THE NOVEMBER 25 TRANSACTION: Common stock - $10 par value, 72,000 shares authorized issued, and outstanding Paid-in capital in excess of par value, common stock $ 720,000 216,000 Account titles & their balances must be added here Total paid in capital Retained earnings 864.000 Total stockholders' equity November 25: Sherman Systems sold all remaining treasury shares for $20 cash per share. ACCOUNT TITLE DATE DEBIT CREDIT STOCKHOLDERS' EQUITY AFTER THE NOVEMBER 25 TRANSACTION: Common stock - $10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Total paid-in capital $ 720,000 216,000 Retained earnings Total stockholders' equity
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
