Question 1

The accounts for Orange Corporation reported the following equity account balances July 31, 2017: Common shares, unlimited shares authorized, 1,800 shares issued and outstanding $43,200 Retained earnings $109,000 Required: June 28, 2018 Prepare the journal entry to record the purchase and retirement of 700 common shares. Orange Corporation paid the shareholders $21 per share. This is the first repurchase of shares. September 26, 2018 Prepare the journal entry to record the purchase and retirement of 400 common shares. Orange Corporation paid $31 per share.

Question 2

On May 1, 2017 Arnes Producers issued $1.660,000, 4%, 6 year bonds. The bonds were dated January 1, 2017 and were sold to investors at par plus accrued interest when the market rate was 4%. The bond interest is paid semi-annually. Arnes Producers year end is December 31. Note: Round your answers to the nearest dollar. Required: Prepare the general journal entries for the following: a) Issuance of the bonds on May 1, 2017 b) Interest payment to the bondholders on June 30, 2017