The writer is very fast, professional and responded to the review request fast also. Thank you.
On October 10, the stockholders’ equity 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
$1,800,000
Requirement 1:
Prepare journal entries to record the following transactions for Sherman Systems. (Omit the “$” sign in your response.)
a.
Purchased 5,000 shares of its own common stock at $25 per share on October 11.
Date
General Journal
Debit
Credit
Oct. 11
Treasury Stock, Common ……………………………………125,000
Cash………………………………………………………………………….125,000
b.
Sold 1,000 treasury shares on November 1 for $31 cash per share.
Date
General Journal
Debit
Credit
Nov. 1
Cash…………………………………………………………….31,000
Treasury Stock, Common……………………………………………25,000
Paid in Capital, Treasury Stock ……………………………………..6,000
c.
Sold all remaining treasury shares on November 25 for $20 cash per share.
Date
General Journal
Debit
Credit
Nov. 25
Cash…………………………………………………80,000
Paid in Capital, Treasury Stock…………….6,000
Retained Earnings………………………………14,000
Treasury Stock Common……………………………………….100,000
Requirement 2:
Prepare the revised equity section of its balance sheet as on October 11. (Omit the “$” sign in your response.)
Common stock
720,000
____________
Paid-in capital
____________
Total Paid-in capital
____________
Retained earnings
864,000
____________
Total
____________
__less________ Cost of treasury stock
___( 125,000)_______
Total stockholders’ equity
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more