Question

In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 185 million shares of its $1 par common stock at $35 per share.

Required:
Assuming that Borland retires shares it reacquires, 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 2, 2018, Borland reacquired 10 million shares at $33.50 per share.
2. On March 3, 2018, Borland reacquired 10 million shares at $37 per share.
3. On August 13, 2018, Borland sold 1 million shares at $43 per share.
4. On December 15, 2018, Borland sold 2 million shares at $37 per share.

Answer 1

		Debit	Credit
Jan 2	Common Stock	10
	Paid-In Capital-Excess of Par	340		=10*(35-1)
	Paid-In Capital -Share Repurchase		15
	Cash		335	=10*33.5
Mar 3	Common Stock	10
	Paid-In Capital-Excess of Par	340		=10*(35-1)
	Paid-In Capital -Share Repurchase	15
	Retained Earnings	5
	Cash		370	=10*37
Aug 13	Cash	43
	Common Stock		1
	Paid-In Capital-Excess of Par		42
Dec 15	Cash	74		=2*37
	Common Stock		2
	Paid-In Capital-Excess of Par		72