The following excerpt is from an article reported in an online issue of Bloomberg. ElectriCar Corp. said it will repurchase $1.9 billion of its shares to reduce dilution from recent stock grants to executives. The par amount per share for ElectriCars common stock is $0.01. Paid-in capitalexcess of par is $5.49 per share on average. The market price was $16.5. Required: 1. Suppose ElectriCar Corp. reacquires 113.00 million shares through repurchase on the open market at $16.50 per share. Prepare the appropriate journal entry to record the purchase. ElectriCar Corp. considers the shares it buys back to be treasury stock. 2. Suppose ElectriCar Corp. considers the shares it buys back to be retired rather than treated as treasury stock. Prepare the appropriate journal entry to record the purchase.

Journal entry worksheet Record the repurchase of shares accounted as treasury stock. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the repurchase of shares for retirement. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal