Question

In: Accounting

On October 10, the stockholders’ equity of Sherman Systems appears as follows.

On October 10, the stockholders’ equity of Sherman Systems appears as follows.
  

   
Common stock–$10 par value, 84,000 shares
authorized, issued, and outstanding		 $ 840,000  
Paid-in capital in excess of par value, common stock   276,000  
Retained earnings   960,000  
Total stockholders’ equity $ 2,076,000  

 
1. Prepare journal entries to record the following transactions for Sherman Systems.
 

  1. Purchased 6,200 shares of its own common stock at $37 per share on October 11.
  2. Sold 1,300 treasury shares on November 1 for $43 cash per share.
  3. Sold all remaining treasury shares on November 25 for $32 cash per share.

Solutions

Expert Solution

1 a. 229,400
  Cash 229,400
         
2 b. 55,900
  Treasury stock 48,100
  Paid-in capital, treasury stock 7,800
         
3 c. 156,800
  7,800
  16,700
  Treasury stock 181,300

 

 

1.

  1. Treasury stock (6,200 shares × $37) = $229,400
  2. Cash (1,300 × $43) = $55,900
    Treasury stock (1,300 shares × $37) = $48,100
  3. Cash (4,900 × $32) = $156,800
    Treasury stock (4,900 shares × $37) = $181,300

Treasury stock (6,200 shares × $37) = $229,400

Robert Otieno answered 3 years ago
Next > < Previous

Related Solutions

On October 10, the stockholders’ equity of Sherman Systems appears as follows.       Common stock–$10...
On October 10, the stockholders’ equity of Sherman Systems appears as follows.       Common stock–$10 par value, 76,000 shares authorized, issued, and outstanding$760,000 Paid-in capital in excess of par value, common stock 236,000 Retained earnings 896,000 Total stockholders’ equity$1,892,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,400 shares of its own common stock at $29 per share on October 11. Sold 1,100 treasury shares on November 1 for $35 cash per share. Sold...
On October 10, the stockholders’ equity of Sherman Systems appears as follows.    Common stock–$10 par...
On October 10, the stockholders’ equity of Sherman Systems appears as follows.    Common stock–$10 par value, 81,000 shares authorized, issued, and outstanding $ 810,000 Paid-in capital in excess of par value, common stock 261,000 Retained earnings 936,000 Total stockholders’ equity $ 2,007,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common stock at $34 per share on October 11. b. Sold 1,225 treasury shares on November 1 for...
On October 10, the stockholders’ equity of Sherman Systems appears as follows.    Common stock–$10 par...
On October 10, the stockholders’ equity of Sherman Systems appears as follows.    Common stock–$10 par value, 87,000 shares authorized, issued, and outstanding $ 870,000 Paid-in capital in excess of par value, common stock 291,000 Retained earnings 984,000 Total stockholders’ equity $ 2,145,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,500 shares of its own common stock at $40 per share on October 11. Sold 1,375 treasury shares on November 1 for $46 cash...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value,...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 81,000 shares authorized, issued, and outstanding $ 810,000 Paid-in capital in excess of par value, common stock 261,000 Retained earnings 936,000 Total stockholders’ equity $ 2,007,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,900 shares of its own common stock at $34 per share on October 11. Sold 1,225 treasury shares on November 1 for $40 cash per...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value,...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 93,000 shares authorized, issued, and outstanding $ 930,000 Paid-in capital in excess of par value, common stock 321,000 Retained earnings 1,032,000 Total stockholders’ equity $ 2,283,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 7,100 shares of its own common stock at $46 per share on October 11. Sold 1,525 treasury shares on November 1 for $52 cash per...
The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common...
The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common Stock, $2 par, 2,000 shares issued and outstanding $4,000 Paid-in Capital in Excess of Par--Common Stock 1,600 Total Capital Stock 5,600 Retained Earnings 5,400 Total Stockholders' Equity $11,000 On March 1, 2014, the company repurchased 800 shares of its common stock at $12 per share but on April 6, 2014, it reissued 600 shares of the shares at $20 per share. A) Prepare the...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 52,000 shares issued and outstanding $ 520,000 Paid-in capital in excess of par value, common stock 210,000 Retained earnings 665,000 Total stockholders’ equity $ 1,395,000 Exercise 13-6 Large stock dividend LO P2 Required: (1) Prepare the updated stockholders' equity section after the distribution...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of...
Which of the following is NOT an account that appears in the Stockholders' Equity section of...
Which of the following is NOT an account that appears in the Stockholders' Equity section of the balance sheet? Treasury stock Additional paid in capital Capital stock Dividends
Exercise 4-10 The stockholders’ equity section of Nash Corporation appears below as of December 31, 2017....
Exercise 4-10 The stockholders’ equity section of Nash Corporation appears below as of December 31, 2017. 8% preferred stock, $50 par value, authorized 100,892 shares, outstanding 90,892 shares $4,544,600 Common stock, $1.00 par, authorized and issued 10,401,200 shares 10,401,200 Additional paid-in capital 20,533,000 Retained earnings $134,778,000 Net income 37,620,000 172,398,000 $207,876,800 Net income for 2017 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $13,010,500 (before tax) as a result of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT