Information taken from Nanotec Security Inc.s January 31, 2020, balance sheet follows: Common shares, 400,000 shares authorized,

Question:

Information taken from Nanotec Security Inc.’s January 31, 2020, balance sheet follows:

Common shares, 400,000 shares authorized,
32,000 shares issued and outstanding ............................... $240,000
Retained earnings ...................................................................... 79,850

On February 1, 2020, the company repurchased and retired 500 common shares (the first retirement the company has recorded).

Required

Prepare general journal entries to record the repurchase and retirement under each of the following independent assumptions.

The shares were repurchased for:

a. $5.00 per share

b. $7.50 per share

c. $10.00 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...

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