Reference no: EM132961014

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

Problem 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.