FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:## Sherman Systems - Stockholders' Equity and Transactions
### Stockholders' Equity Section (as of October 10)
The stockholders' equity section for Sherman Systems appears as follows:
- **Common Stock**: $10 par value, 4,225 shares authorized, issued, and outstanding — **$750,000**
- **Paid-in Capital in Excess of Par Value, Common Stock** — **$231,000**
- **Retained Earnings** — **$888,000**
**Total Stockholders' Equity** — **$1,869,000**
### Transactions to Record
Prepare journal entries for the following transactions of Sherman Systems:
1. **On October 11**: Purchased 5,300 shares of its own common stock at $28 per share.
2. **On November 1**: Sold 1,075 treasury shares at $34 cash per share.
3. **On November 25**: Sold all remaining treasury shares for $27 cash per share.
### Stockholders' Equity Section Update
After the October 11 treasury stock purchase, you'll need to prepare an updated stockholders' equity section reflecting these changes.
#### Steps to Complete:
1. **Prepare Journal Entries**: Record each transaction for Sherman Systems.
2. **Update Equity Section**: Recalculate the stockholders' equity after the October 11 treasury stock purchase.
### Additional Features
- **Transaction List**: You can view a full list of transactions for easier reference.
- **Journal Entry Worksheet**: A tool available to help you draft and organize your journal entries.
**Note**: Navigate the tabs for required sections to input your answers and complete this educational exercise.
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