A company issues 20,000 common shares for $15 each. Later in the year, the same company issues another 35,000 common shares for $27 each. Two weeks later, it repurchases 5,000 shares for 19 per share. The entry to record the repurchase would be which of the following? Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares for $18,200, credit Common Shares for $113,200. Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash for $113,200. Debit Common Shares for $95,000, credit Cash for $95,000. Debit Common Shares for $113,200, credit Contributed Capital - Retirement of Common Shares for $18,200 & Cash for $95,000.
A company issues 20,000 common shares for $15 each. Later in the year, the same company issues another 35,000 common shares for $27 each. Two weeks later, it repurchases 5,000 shares for 19 per share. The entry to record the repurchase would be which of the following? Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares for $18,200, credit Common Shares for $113,200. Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash for $113,200. Debit Common Shares for $95,000, credit Cash for $95,000. Debit Common Shares for $113,200, credit Contributed Capital - Retirement of Common Shares for $18,200 & Cash for $95,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company issues 20,000 common shares for $15 each. Later in the year, the same
company issues another 35,000 common shares for $27 each. Two weeks later, it
repurchases 5,000 shares for 19 per share. The entry to record the repurchase
would be which of the following?
Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares
for $18,200, credit Common Shares for $113,200.
Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash
for $113,200.
Debit Common Shares for $95,000, credit Cash for $95,000.
Debit Common Shares for $113,200, credit Contributed Capital - Retirement of
Common Shares for $18,200 & Cash for $95,000.
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