E10-41B. (Learning Objectives 2, 3, 4: Recording share issuance, treasury share, and dividend transactions) At December 31, 20X6, Western Corporation reported the shareholders’

equity accounts shown here (with dollar amounts in millions, except per share amounts).

Western’s 20X7 transactions included the following:

a. Net income, €447 million.

b. Issuance of 10 million shares of ordinary share for €12.50 per share.

c. Purchase of 4 million shares of treasury share for €15 million.

d. Declaration and payment of cash dividends of €35 million.
Requirement 1. Journalize Western’s transactions in

b, c, and

d. Explanations are not required.

Transcribed Image Text:

Ordinary share 1.50 par value per share, 1,700 million shares issued..... Capital in excess of par value.. Retained earnings........... Treasury share, at cost. 2,550 7,650 260 (10) Total shareholders' equity.. 10,450