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On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 5,350 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 900,000 306,000 1,008,000 $ 2,214,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,800 shares of its own common stock at $43 per share on October 11. b. Sold 1,450 treasury shares on November 1 for $49 cash per share. c. Sold all remaining treasury shares on November 25 for $42 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. Record the purchase of 6,800 shares of its own common stock for $43 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record the reissue of 1,450 shares of the treasury stock for $49 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record the reissue of the remaining shares of the treasury stock for $42 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Required 1 Required 2 Prepare the stockholders' equity section after the October 11 treasury stock purchase. Revised Stockholders' Equity Section of Balance Sheet After October 11 Total contributed capital 0 Total 0 Total stockholders' equity $ 0

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