Question
A corporation that follows IFRS, reported the following amounts in the shareholders' equity section: Preferred shares, $8 cumulative dividend (100 000 shared authorized, 50 000
A corporation that follows IFRS, reported the following amounts in the shareholders' equity section:
Preferred shares, $8 cumulative dividend (100 000 shared authorized, 50 000 shares issued) | 30 000 |
Common shares ( 1 000 000 authorized, 250 000 issued). | 100 000 |
Contributed surplus* | 145 000 |
Retained earnings | 1 900 000 |
Retained earnings total | 2 175 000* |
* THe contributed surplus arose from the excess of proceeds over cost on a previous cancellation. Assume that Net icome for 2020 was 0$. During 2020, the company had the 6 transactions that affecct shareholders equity
QUESTION:
2) Repurchased 100 common shares for $45 per share and cancelled them. The journey entry is:
A) Debit common shares 40, debit retained earnings 4460, credit cash 4500
B) Debit common shares 40, credit cash 40
C) Debit common shares 4500 credit cash 4500
D) Debit common shares 40, debit contributed surplus 4460, credit cash 4500
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