On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 86,000 shares authorized, issued, and outstanding $ 860,000 Paid-in capital in excess of par value, common stock 286,000 Retained earnings 976,000 Total stockholders’ equity $ 2,122,000

treasury stock   249,600 debit

             cash                 249,600 credit

cash                  60,750 debit

    treasury stocks      52,650 credit

    additional paid-in TS 8,100 credit

cash                            171,700 debit

additional paid-in TS   5,050 debit

    treasury stocks                 176,750 credit

Quesions

Record journal entries

Additional missing information:

Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6.400 shares of its own common stock at $39 per share on October 11.

b. Sold 1,350 treasury shares on November 1 for $45 cash per share

c. Sold all remaining treasury shares on November 25 for $34 cash per share

Explanation:

we record at cost when the purchase is made:

6,400 shares x $39 each = 249,600

Then, at sale we compare the cahs proceed with our cost and crease an additional paid-in treasury stock if needed

we sale 1,350 at $45 = 60,750

cost 1,350 x $39 = 52,650

additional paid-in treasury stocks 8,100

6,400 - 1,350 = 5,050 shares in treasury remaining

IF sale occur below csot, we decrease the paid-in TS or retained earnings.

5,050 x $34 =  171,700

5,050 x $35 =  176,750

decrease to additional paid-in TS 5,050

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