On october 10, the stockholders’ equity of sherman systemsappears as follows.
common stock–$10 parvalue, 90,000 shares authorized, issued, and outstanding$900,000
paid-in capital inexcess of par value, common stock306,000
retainedearnings1,008,000 total stockholders’equity$2,214,000
1.prepare journal entries to record the following transactions forsherman systems.
a. purchased 6,800 shares of its own common stock at $43 per shareon october 11.
b. sold 1,450treasury shares on november 1 for $49 cash per share.
c. sold allremaining treasury shares on november 25 for $38 cash pershare.
2.prepare the revised equity section of its balance sheet afterthe october 11 treasury stock purchase.