r Communications articles of incorporation authorized the issuance of 120 millio
ID: 2461722 • Letter: R
Question
r Communications articles of incorporation authorized the issuance of 120 million common shares The transactions described below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders equity included the following Shareholders' Equity (S in millions) Common stock, 100 million shares at $1 par 100 Paid-in capital-excess of par Retained earnings 300 290 Required: Assuming that Bomer Communications retires shares it reacquires (restores their status to that of authorized but unissued shares) record the appropriate journal entry for each of (If no entry is required for a transaction/event, select "No journal ent field. Enter your answers in millions (i.e. 10,000,000 should be entered as 1 ry quired" in the first accourn 1 On January 7, 2016, Borner reacquired 2 million shares at $4.50 per share 2 On August 23 2016 Borner reacquired 4 million shares at $3 00 per share 3 On July 25, 2017, Borner sold 3 million common shares at S5 per share view transaction list view general journal Debit Credit Date General JournalExplanation / Answer
Dr. Common Stock (2M shares * 1 par) $2,000,000
Dr. Paid-in-capital - excess of par (2M shares * 3) $6,000,000
Dr. Retained earnings (difference) $1,000,000
Cr. Cash (2M shares * 4.5 per share) $9,000,000
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