On October 10, 2014, the equity account balances for Bushnell, Inc., showed the following: Common shares, unlimited

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On October 10, 2014, the equity account balances for Bushnell, Inc., showed the following:

Common shares, unlimited shares authorized,

36,000 shares issued, and outstanding ......................................................... $561,600

Retained earnings............................................................................................. 518,400

On October 11, 2014, the corporation repurchased for treasury 4,500 common shares at $36 per share.


Required

a. Prepare the equity section of the balance sheet on October 11, 2014, after the repurchase.

b. Journalize the following transactions for Bushnell Inc.:

(i) The purchase of the treasury shares on October 11.

(ii) The sale of 1,500 treasury shares on November 1 for cash at $45.60 per share.

(iii) The sale of all the remaining treasury shares on November 25 for cash at $28.80 per share.


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...
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...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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