Sheridan Inc. has outstanding 13,300 shares of $10 par value common stock. On July 1, 2020, Sheridan reacquired 111 shares at $86 per share. On September 1, Sheridan reissued 65 shares at $93 per share. On November 1, Sheridan reissued 46 shares at $83 per share.

                                                   DR.       CR.

July 1, 2020

Treasury Stock                          $9,546

Cash                                                        $9,546

September 1, 2020

Cash                                           $6,045

Treasury Stock                                       $5,590

Paid-in Capital from Treasury Stock     $455

November 1, 2020

Cash                                           $3,818

Paid-in Capital Treasury Stock $138

Treasury Stock                                       $3,956

Explanation:

Shared Repurchased are known as Treasury shares and return received on its sale is added to paid-in capital Treasury stock and loss deducted from same.

Working:

July 1, 2020

Treasury Stock = 111 x 86 = $9,546

September 1, 2020

Cash received = 65 x $93 = $6,045

Treasury Stock = 65 x 86 = $5,590

November 1, 2020

Cash received = 46 x $83 = $3,818

Treasury Stock = 46 x 86 = $3,956

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