Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 90,000 issued and outstanding Class A common

image text in transcribed

Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 90,000 issued and outstanding Class A common shares, 190,000 issued and outstanding $1,138,500 950,000 Class B common shares, 440,000 issued and outstanding 2,288,000 Retained earnings 3,265,000 Total shareholders' equity $7,641,500 On June 10, Blossom reacquired and cancelled 1,900 Class A common shares at a cost of $3.85 per share. On August 26, 2020, Blossom issued 3,800 Class A common shares for $8.55 each. On September 30, the company reacquired and cancelled another 1,900 Class A common shares at $8.55 per share. Prepare the journal entries required to record these transactions. (Round per share value to 4 decimal places, e.g. 1.2512 and final answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation June 10 Common Shares Contributed Surplus Cash Aug. 26 Cash Common Shares Sept. 30 Common Shares Contributed Surplus Retained Earnings Cash Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Management Accounting

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

16th edition

978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789

More Books

Students also viewed these Accounting questions