Borner Communications articles of incorporation authorized the issuance of 130 million common shares. The transactions described below
Question:
Borner Communications articles of incorporation authorized the issuance of 130 million common shares. The transactions described
below effected changes in Borners outstanding shares. Prior to the transactions. Borners shareholders equity included the following:
Common Stock, 100 million shares at $1 par = $100 million
Paid-in-capital excess in par = 300 million
Retained Earnings = 210 million
Required:
Assuming that Borner Communication retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions:
1. On January 7, 2016, Borner reacquired 2 million shares at $5.00 per share.
2. On August 23, 2016, Borner reacquired 4 million shares at $3.50 per share.
3. On July 25, 2017, Borner sold 3 million common shares at $6 per share.