On October 10, the stockholders’ equity section of Sherman Systems appears as follows.
Common stock–$10 par value, 72,000 shares authorized, issued, and outstanding $ 720,000
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders’ equity $ 1,800,000
1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,000 shares of its own common stock at $25 per share on October 11. Sold 1,000 treasury shares on November 1 for $31 cash per share. Sold all remaining treasury shares on November 25 for $24 cash per share.
2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.