Question

In: Accounting

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 $40 cash per share.

c. Sold all remaining treasury shares on November 25 for $29 cash per share.

2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Solutions

Expert Solution

Date Title Debit Credit
Oct-11 Treasury Stock (5,900*$34) $ 200,600
Cash $ 200,600
(To record repurchase of 5900 own sahres)
Nov-01 Cash (1,225*$40) $    49,000
Treasury stock (1,225*$34) $    41,650
Paid in capital-Treasury Stock $      7,350
(To record sale 1225 shares from treasury stock)
Nov-25 cash (5,900-1,225)*$29) $ 135,575
Paid in capital-Treasury Stock $      7,350
Retained earnings $    16,025
Treasury stock (5,900-1,225)*$34) $ 158,950
(To record sale balance from treasury stock)

2.

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 paid in capital and retained earnings $ 2,007,000
Less: treasury Stock, 5,900 shares $   (200,600)
Total stockholders' equity $ 1,806,400

You can reach me over comment box if you have any doubts. Please rate this answer

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

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...
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.
On October 10, the stockholders’ equity of Sherman Systems appears as follows.       Common stock–$10 par value, 84,000 sharesauthorized, 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.  Purchased 6,200 shares of its own common stock at $37 per share on October 11. Sold 1,300 treasury shares...
Stockholders' equity of Ziyech Corporation is as follows: Common stock, $20 par; issued and outstanding 90,000...
Stockholders' equity of Ziyech Corporation is as follows: Common stock, $20 par; issued and outstanding 90,000 shares: $1,800,000 Paid-in capital – excess of par: $900,000 Retained earnings: $760,000        The current market price of Ziyech’s stock is $37 per share. If Ziyech declares and distributes a 20% stock dividend, paid-in capital – excess of par balance will be: Multiple Choice $1,566,000 $1,206,000 $1,260,000 $900,000
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 $20 per share. A) Prepare the...
On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value, 81,500 shares issued and outstanding) $ 815,000 Paid-in Capital in Excess of Par Value 503,000 Retained Earnings 635,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value,  75,500 shares issued and outstanding) $ 755,000 Paid-in Capital in Excess of Par Value 484,500 Retained Earnings 685,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a  10% stock dividend to stockholders of record on...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value,  75,500 shares issued and outstanding) $ 755,000 Paid-in Capital in Excess of Par Value 484,500 Retained Earnings 685,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a  10% stock dividend to stockholders of record on...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT