A company's common share account showed the following transactions for 20x3: Date Jan 1 Description Opening balance, 20,000 shares Balance $220,000 Dr. Cr. Mar 1 Issue 5,000 shares* 60,000 280,000 Jun 1 Issue 2,300 shares for cash 25,000 305,000 Sept 1 Repurchase 4,000 shares @ $18 72,000 233,000 * The shares issued on March 1 were for the purchase of land appraised at $65,000 as of the date of the offer on Feb 28. The shares were trading at $12 per share on March 1, the date of closing (i.e. the date the land was acquired). The December 31, 20x3 unadjusted trial balance shows a balance of zero in the Contributed Surplus – Common Share Repurchases account. Required – Prepare any adjusting journal entries required at December 31, 20x3.
A company's common share account showed the following transactions for 20x3: Date Jan 1 Description Opening balance, 20,000 shares Balance $220,000 Dr. Cr. Mar 1 Issue 5,000 shares* 60,000 280,000 Jun 1 Issue 2,300 shares for cash 25,000 305,000 Sept 1 Repurchase 4,000 shares @ $18 72,000 233,000 * The shares issued on March 1 were for the purchase of land appraised at $65,000 as of the date of the offer on Feb 28. The shares were trading at $12 per share on March 1, the date of closing (i.e. the date the land was acquired). The December 31, 20x3 unadjusted trial balance shows a balance of zero in the Contributed Surplus – Common Share Repurchases account. Required – Prepare any adjusting journal entries required at December 31, 20x3.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A company's common share account showed the following transactions for 20x3:
Cr.
Balance
$220,000
Date
Dr.
Description
Opening balance, 20,000 shares
Issue 5,000 shares*
Issue 2,300 shares for cash
Jan 1
Mar 1
60,000
25,000
280,000
Jun 1
305,000
Sept 1
Repurchase 4,000 shares @ $18
72,000
233,000
* The shares issued on March 1 were for the purchase of land appraised at $65,000 as
of the date of the offer on Feb 28. The shares were trading at $12 per share on March 1,
the date of closing (i.e. the date the land was acquired).
The December 31, 20x3 unadjusted trial balance shows a balance of zero in the
Contributed Surplus – Common Share Repurchases account.
Required – Prepare any adjusting journal entries required at December 31, 20x3.
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