Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Borner Communications articles of incorporation authorized the issuance of 160 million common shares. The transactions described below effected changes in Borners outstanding shares. Prior to

Borner Communications articles of incorporation authorized the issuance of 160 million common shares. The transactions described below effected changes in Borners outstanding shares. Prior to the transactions, Borners shareholders equity included the following:

Shareholders Equity ($ in millions) Common stock,

145 million shares at $1 par $ 145 Paid-in capital excess of par 435 Retained earnings 255 Required: Assuming that Borner Communications 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: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

On January 7, 2021, Borner reacquired 4 million shares at $6.00 per share.

On August 23, 2021, Borner reacquired 6 million shares at $3.50 per share.

On July 25, 2022, Borner sold 5 million common shares at $7 per share.

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

Money, Markets And Capital The Case For A Monetary Analysis

Authors: Jean Cartelier

1st Edition

0815355777, 9780815355779

More Books

Students also viewed these Accounting questions