help to answer it and Explain D Virginia Community Col xy Connect s://newconnect
ID: 2540374 • Letter: H
Question
help to answer it and Explain
D Virginia Community Col xy Connect s://newconnect.mheducation.com/flow/connect.html apters 7 to 12 6 ve Ramirez Company Insta × NI ! Exercise 11-10 Recording and reporting treasury stock transactions Lo On October 10, the stockholders' equity of Sherman Systems appears as follows. Common stock-s1e par value, 91,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 910,000 311,900 1,016,8e0 S2,237,000 1. Prepare journal entries to record the following transactions for Sherman Systems a. Purchased 6,900 shares of its own common stock at $44 per share on October 11. b. Sold 1,475 treasury shares on November 1 for $50 cash per share c. Sold all remaining treasury shares on November 25 for $39 cash per share. View transaction list Journal entry worksheet Record the purchase of 6,900 shares of its own common stock for $44 cash per share. Note: Enter debits befort tredits Transaction General Journal Debit reditExplanation / Answer
Answer
S No.
Debit
Credit
a
Treasury Stock (6,900 shares * $44 each)
303,600
Cash
303,600
(Being 6,900 treasury stocks purchased @ $44 each)
b
Cash (1,475 shares * $50)
73,750
Treasury Stock (1,475 shares * $44)
64,900
Paid-in-capital - Treasury Stock (1,475 shares * $6)
8,850
(Being 1,475 treasury stock issued at premium)
c
Cash [(6,900 - 1,475) * $39]
211,575
Paid-in-capital - Treasury Stock [5,425 * (44 - 39)]
27,125
Treasury Stock [5,425 * $44]
238,700
(Being remaining treasury stock sold at loss)
If you have any doubt plz let me know.
S No.
Debit
Credit
a
Treasury Stock (6,900 shares * $44 each)
303,600
Cash
303,600
(Being 6,900 treasury stocks purchased @ $44 each)
b
Cash (1,475 shares * $50)
73,750
Treasury Stock (1,475 shares * $44)
64,900
Paid-in-capital - Treasury Stock (1,475 shares * $6)
8,850
(Being 1,475 treasury stock issued at premium)
c
Cash [(6,900 - 1,475) * $39]
211,575
Paid-in-capital - Treasury Stock [5,425 * (44 - 39)]
27,125
Treasury Stock [5,425 * $44]
238,700
(Being remaining treasury stock sold at loss)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.