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

Common stock-$10 par value, 92,000 shares authorized, issued, and outstanding	$ 920,000
Paid-in capital in excess of par value, common stock	316,000
Retained earnings	1,024,000
Total stockholders’ equity,eee	$ 2, 260,000

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

a. Purchased 7,000 shares of its own common stock at $45 per share on October 11 b. Sold 1,500 treasury shares on November 1 for $51 cash per share.

c. Sold all remaining treasury shares on November 25 for $40 cash per share.

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

Revised Equity Section of Balance Sheet After October 11
Common stock, $10 par
Paid-in capital in excess of par value, common stock
Total contributed capital	0
Retained earnings
Total	0
Less: Cost of treasury stock
Total stockholders’ equity	$ o