(Repurchase of shares, LO 2) For the following two transactions, prepare the required journal entries:

a. On July 4, 2006 Nourse Inc. (Nourse) announced that it would be repurchasing up to 100,000 of its common shares on the open market. On July 12, 2006 Nourse repurchased 80,000 shares for $1,000,000. On the date of the repurchase Nourse had 2,000,000 shares outstanding and the amount in the Common Stock account was $4,000,000.

b. On August 15, 2006 Ryley Ltd. (Ryley) announced that it would be repurchasing up to 50,000 of its common shares on the open market. On August 25, 2006 Ryley repurchased 45,000 shares for $300,000. On the date of the repurchase Ryley had 500,000 shares outstanding and the amount in the Common Stock account was $2,500,000.