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, 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 per share.
- Sold all remaining treasury shares on November 25 for $35 cash per share.
2. Prepare the revised equity section of its
balance sheet after the October 11 treasury stock
purchase.
Solutions
Expert Solution
| Journal entries: | ||||||
| S.no. | Accounts title and explanation | Debit $ | Credit $ | |||
| a. | Treasury stock (6500*40) | 2,60,000 | ||||
| Cash account | 2,60,000 | |||||
| (for treasury stock purchased) | ||||||
| b. | Cash account (1375*46) | 63250 | ||||
| Treasury stock (1375*40) | 55000 | |||||
| Paid in capital-Treasury stock | 8250 | |||||
| (for resale of treasury stock at gain) | ||||||
| c. | Cash account (5125*35) | 179375 | ||||
| Paid in capital-treasury stock | 8250 | |||||
| Retained earnings | 17375 | |||||
| Treasury stock (5125*40) | 205000 | |||||
| (for resale of treasury stock) | ||||||
| Equity Section after Oct11. | ||||||
| Common Stock (87,000 shares @10) | 8,70,000 | |||||
| Paid in capital in excess of par value | 2,91,000 | |||||
| Retained earnings | 9,84,000 | |||||
| Total Paid in capital | 21,45,000 | |||||
| Less: Treasury stock (6500*40) | -2,60,000 | |||||
| Total Stockhodler's equity | 18,85,000 | |||||
ekkarill92 answered 1 year agoRelated 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, 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 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
ADVERTISEMENT
Latest Questions
- 11. Sources of monopoly power A monopoly, unlike a perfectly competitive firm, has some market power....
- You sell short 400 shares of Apple that are currently selling at $200 per share. You...
- Which of the following indexes requires frequent rebalancing? [I] Value-weighted index [II] Price-weighted index [III] Equally-weighted...
- Covid-19 lockdown: Indian rice exports suspended on supply chain disruption Reuters Last updated on April 6,...
- Just if are sure 100000% in order not to get thump down In free space, a...
- Quick Start Company makes 12-volt car batteries. From historical data, the company knows that the life...
- Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1x...
ADVERTISEMENT