On October 10, the stockholders? equity of Sherman Systems appears as follows: Common stock?$10 par value, 72,000 $ 720,000
shares authorized, issued, and outstanding
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders equity $ 1,800,000
Prepare journal entries to record the following transactions for Sherman Systems.
1a. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1c. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Please find answers in explanation column

Explanation:

Common stock?$10 par value, 72,000

shares authorized, issued, and outstanding                 $ 720,000

Paid-in capital in excess of par value, common stock  $216,000

Retained earnings                                                         $864,000

Total stockholders equity                                             $1,800,000

a)journal entry to record the purchase of shares on Oct 11

Date  Account                                Debit                 Credit

Oct 11 Treasury stock                     $125,000

Cash                                                                $125,000

Calculation

value of the Treasury stock=No.of shares×Value per share

=5,000×$25  =$125,000

b. journal entry to record the sales of treasury shares.

Date  Account                                Debit                 Credit

Oct 11  Cash                                     $31,000

Treasury stock                                                       $25,000

Paid in capital from the sale of the stock

(31,000 - 25,000)                                                      $6,000

Calculation

Cash =No.of shares×Value per share

=1,000×$31 =$31,000

Treasury stock=No.of shares× purchased value of share

=1,000×$25  =$25,000

1c)journal entry to record the sales of the remaining  treasury shares

Date  Account                                              Debit                 Credit

Nov 1  Cash                                                $80,000

Paid in capital from the sale of the stock $6,000

Retained earning                                     $14,000

Treasury stock                                                               $100,000

Calculation

Remaining treasury shares = 5000-1000= $4000

Cash =No.of shares×Value per share

=4, 000× 20  =$80 ,000

Treasury stock=No.of shares× purchased value of share

=4,000×$25  =$100,000

recall paid in  capital from sale = $6000

retained earnings = treasury stock - cash- paid in capital= 100,000- 80,000 - 6,000= $14,000

2) Revised equity of the balance sheet to show new  total stockholders’ equity

Account /Particulars                                Amount

Common stock $ 720,000

Paid-in capital   $216,000

Retained earnings         $864,000

less Treasury stock       ($125,000)

Balance                                                    $739,000

Total stockholders equity                      $1,675,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

they work in some type of way