Borner Communications’ articles of incorporation authorized the
issuance of 130 million common shares. The transactions described
below effected changes in Borner’s outstanding shares. Prior to the
transactions, Borner’s shareholders’ equity included the
|Shareholders’ Equity||($ in millions)|
|Common stock, 100 million shares at $1 par||$||100|
|Paid-in capital—excess of par||300|
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
1. On January 7, 2018, Borner reacquired 2 million shares at $5 per share.
2. On August 23, 2018, Borner reacquired 4 million shares at $3.50 per share.
3. On July 25, 2019, Borner sold 3 million common shares at $6 per share.
|January 07,2018||Common stock||2||=2*1|
|Paid-in capital—excess of par||6||=2*3|
|August 23,2018||Common stock||4||=4*1|
|Paid-in capital—excess of par||12||=4*3|
|Paid-in capital—share repurchase||2|
|July 25, 2019||Cash||18||=3*6|
|Paid-in capital—excess of par||15|
Get Answers For Free
Most questions answered within 1 hours.