On October 10, the stockholders\' equity of Sherman Systems appears as follows:

Question

On October 10, the stockholders' equity of Sherman Systems appears as follows: Common stock-$18 par value, 72,00 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 720, 0ee 216, 898 864, e08 $1, 80e, 88e 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. View transaction list Journal entry worksheet Record the purchase of 5,000 shares of its own common stock for $25 cash per share Note: Enter deblts before credits.

Explanation / Answer

SOLUTION:

Treasury Stock - Common

Treasury Stock - Common

Treasury Stock - Common

Date Particulars Debit Credit 11-Oct

Treasury Stock - Common

125,000 Cash 125,000 01-Nov Cash 31,000

Treasury Stock - Common

25,000 Paid in capital - Treasury Stock 6,000 Nov-25 Cash 80,000 Retained earnngs 14,000 Paid in capital - Treasury Stock 6,000

Treasury Stock - Common

100,000

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