Question

Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,800 shares of its own common stock at $43 per share on October 11. Sold 1,450 treasury shares on November 1 for $49 cash per share. Sold all remaining treasury shares on November 25 for $38 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

Answer 1

Step-by-step explanation

I think your question missed of key information for question 2, so I just answer question at my best for helping you.

Debit Credit

11-Oct

Treasury 292400

Cash 292400

Being own shares repurchased

1-Nov

Cash (1,450 × 49) 71,050

Treasury Stock (1,450 × 43) 62,350

Paid-in Capital from Sale of Treasury Stock 9,700

To record the sale of treasury stock.

November 25

Cash (5350 × 38) 203,300

Paid-in Capital from Sale of Treasury Stock 9,700

Retained Earnings 17,050

Treasury Stock (5350 × 43) 230,050

To record the sale of the remaining treasury shares