1. Bruce Corporation has the following shareholders' equity on December 31, 2021:
3. Shareholders' equity
4. Share capital
5. $10 convertible preferred shares,10,000 shares authorized, 5,000 shares issued$570,000Common shares,200,000 shares authorized, 90,000 shares issued1,800,000Total share capital2,370,000Retained earnings450,000Total shareholders' equity$2,820,000
6. If 10,000 common shares were reacquired for $17 per share, the journal entry to record the transaction would
7. debit Retained Earnings for $30,000.
8. debit Common Shares for $170,000.
9. credit Contributed Surplus for $30,000.
10. credit Common Shares for $170,000.