On January 1, 2011, the equity section of Rowen Corporation shows: share capital-ordinary (15 par value) 1,500,000;

Question:

On January 1, 2011, the equity section of Rowen shows: share capital-ordinary (15 par value) £1,500,000; share premium-ordinary £1,000,000; and retained earnings £1,200,000. During the year, the following treasury share transactions occurred.
Mar. 1 Purchased 50,000 shares for cash at £16 per share.
July 1 Sold 10,000 treasury shares for cash at £17 per share.
Sept. 1 Sold 8.000 treasury shares for cash at £15 per share.

Instructions
(a) Journalize the treasury share transactions.
(b) Restate the entry for September 1, assuming the treasury shares were sold at £13 per share.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...