Question

In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of its $1 par common stock at $33 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 9 million shares at $32.00 per share.

2. On March 3, 2018, Borland reacquired 9 million shares at $35 per share.

3. On August 13, 2018, Borland sold 1 million shares at $41 per share.

4. On December 15, 2018, Borland sold 2 million shares at $35 per share.

Answer 1

January 02, 2018	Common stock	9
	Paid-in capital—Excess of par	288		=9*(33-1)
	Paid-in capital—Share repurchase		9
	Cash		288	=9*32
March 03, 2018	Common stock	9
	Paid-in capital—Excess of par	288		=9*(33-1)
	Paid-in capital—Share repurchase	9
	Retained earnings	9
	Cash		315	=9*35
August 13, 2018	Cash	41
	Common stock		1
	Paid-in capital—Excess of par		40
December 15, 2018	Cash	70		=2*35
	Common stock		2
	Paid-in capital—Excess of par		68