Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shotgun Corporation began 2020 with the following account balances: Common shares, 250,000 shares authorized, 80,000 outstanding $1,728,000 Contributed surplus share repurchase 9,000 Retained earnings 500,000

Shotgun Corporation began 2020 with the following account balances:

Common shares, 250,000 shares authorized, 80,000 outstanding $1,728,000

Contributed surplus share repurchase 9,000

Retained earnings 500,000

In March 2020, Shotgun Corporation reported the following transactions:

Mar. 12 Repurchased 4,500 of its own shares for $25 per share.

16 Sold 1,200 of the repurchased shares for $27 per share.

29 Repurchased 2,000 of its own shares for $21 per share.

Required: a) Record the journal entries for the above transactions (no explanations required) (8 Marks).

b) Calculate the ending balance in the common share account on March 31, 2020

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

Capex A Knowledge Based Expert System For Substantive Audit Planning

Authors: J. Efrim Boritz, Anthony K. P. Wensley

1st Edition

1558760563, 978-1558760561

More Books

Students also viewed these Accounting questions