Question
The Dec. 31, 2019 shareholders' equity section of ABC Corporation's statement of financial position is as follows: Share Capital Ordinary Shares, 2 par, 100,000 shares
The Dec. 31, 2019 shareholders' equity section of ABC Corporation's statement of financial position is as follows:
Share Capital
Ordinary Shares, 2 par, 100,000 shares authorized, 75,000 shares issued and outstanding. = 300,000
Share Premium. =187,500
Total Share Capital. = 487,500
Retained Earnings. = 182,500
Total Shareholders' Equity. = 670,000
Required: Prepare the journal entries to record the following transactions that took place during January 2020:
Jan. 4 Purchased 12,000 shares of its own ABC's stock for 84,000.
Jan. 10 Sold 2,000 shares of the treasury stock for 4.50 per share.
Jan. 29 Sold 7,000 shares of the treasury stock for 3 per share.
Jan. 31 Sold the remaining 3,000 shares of treasury stock for 3.50 per share.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started