At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 217,600 Preferred shares, 8,000 shares outstanding, no-par Common shares, 181,900 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 472,940 111,500 557,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,700 common shares bought and retired at $4 per share 16 March 4,700 preferred shares bought and retired at $30.50 per share 20 May 10,000 common shares bought and retired at $1 per share 25 May 2,400 preferred shares bought and retired at $16.70 per share 30 May 11,500 common shares issued at $8.70 per share 15 Nov. 5,500 common shares bought and retired at $22 per share Required: 1. Give journal entries to record each share retirement transaction. (Round intermediate calculations to 2 decimal places and Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 4COP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...
icon
Related questions
Question
100%
At the beginning of 20X1, the accounting records of Friends Corp. reported the following:
$ 217,600
Preferred shares, 8,000 shares outstanding, no-par
Common shares, 181,900 shares outstanding, no-par
Contributed capital on common share retirement
Retained earnings
472,940
111,500
557,500
During the year, the company acquired and retired shares, while other shares were issued:
15 March 25,700 common shares bought and retired at $4 per share
16 March 4,700 preferred shares bought and retired at $30.50 per share
20 May 10,000 common shares bought and retired at $1 per share
25 May 2,400 preferred shares bought and retired at $16.70 per share
30 May 11,500 common shares issued at $8.70 per share
15 Nov. 5,500 common shares bought and retired at $22 per share
Required:
1. Give journal entries to record each share retirement transaction. (Round intermediate calculations to 2 decimal places and Round
your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.)
Transcribed Image Text:At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 217,600 Preferred shares, 8,000 shares outstanding, no-par Common shares, 181,900 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 472,940 111,500 557,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,700 common shares bought and retired at $4 per share 16 March 4,700 preferred shares bought and retired at $30.50 per share 20 May 10,000 common shares bought and retired at $1 per share 25 May 2,400 preferred shares bought and retired at $16.70 per share 30 May 11,500 common shares issued at $8.70 per share 15 Nov. 5,500 common shares bought and retired at $22 per share Required: 1. Give journal entries to record each share retirement transaction. (Round intermediate calculations to 2 decimal places and Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1 Record retirement of common shares at $4 per share.
2 Record retirement of preferred shares at $30.50 per
share.
3
Record retirement of common shares at $i per share.
4 Record retirement of preferred shares at $16.70 per
share.
Credit
5 Record issue of common shares.
6
Record retirement of common shares at $22 per share.
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
Transcribed Image Text:View transaction list 1 Record retirement of common shares at $4 per share. 2 Record retirement of preferred shares at $30.50 per share. 3 Record retirement of common shares at $i per share. 4 Record retirement of preferred shares at $16.70 per share. Credit 5 Record issue of common shares. 6 Record retirement of common shares at $22 per share. Note : = journal entry has been entered Record entry Clear entry View general journal
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for stockholder's equity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College