Question
WILL CERTAINTLY UPVOTE. NEED HELP ASAP EFG Company's charter allows it to issue 1,000,000 no-par value common shares. On July 1, 2021, the company has
WILL CERTAINTLY UPVOTE. NEED HELP ASAP
EFG Company's charter allows it to issue 1,000,000 no-par value common shares. On July 1, 2021, the company has 25,000 common shares issued and outstanding with a book value of $525,000. The opening balance of the retained earnings account is $132,000.
Required:
a. Prepare journal entries for the following transactions for EFG Company. Assume the opening balance in the contributed surplus account was zero. Do not round intermediate numbers and round the final results to the nearest dollar.
1) On October 10, 2021, EFG bought back 2,500 shares at $18 each for cancellation.
On November 12, 2021, EFG bought back 3,500 shares at $26 each for cancellation.
In December, EFG declared and distributed 2,000 shares that worth $35,000 as stock dividend to its current shareholders
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