Debon Ltd. had the following shareholders' equity on March 26, 2014: Common shares, unlimited shares authorized, 140,000

Question:

Debon Ltd. had the following shareholders' equity on March 26, 2014: Common shares,
unlimited shares authorized, 140,000 shares issued and outstanding...............$420,000
Retained earnings............................................................................475,000
Total shareholders' equity.................................................................$895,000
On May 3, 2014, the company repurchased and cancelled 5,000 common shares at $3.50 per share.
1. Journalize this transaction and prepare the shareholders' equity section of the at June 30, 2014.
2. How many common shares are outstanding after the share repurchase?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...