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

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

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

a. Purchased 5,000 shares of its own common stock at $22 per share on October 11.

b. Sold 1,000 treasury shares on November 1 for $28 cash per share.

c. Sold all remaining treasury shares on November 25 for $17 cash per share.

2. Explain how the company’s equity section changes after the October 11 treasury stock purchase, and

prepare the revised equity section of its balance sheet at that date.