Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 90,000 issued and outstanding Class A common shares, 190,000 issued and outstanding Class B common shares, 440,000 issued and outstanding Retained earnings Total shareholders' equity $1,138,500 950,000 2,288,000 3,265,000 $7,641,500 On June 10, Blossom reacquired and cancelled 1,900 Class A common shares at a cost of $3.85 per share. On August 26, 2020, Blossom issued 3,800 Class A common shares for $8.55 each. On September 30, the company reacquired and cancelled another 1,900 Class A common shares at $8.55 per share. Prepare the journal entries required to record these transactions. (Round per share value to 4 decimal places, e.g. 1.2512 and final answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 90,000 issued and outstanding Class A common shares, 190,000 issued and outstanding Class B common shares, 440,000 issued and outstanding Retained earnings Total shareholders' equity $1,138,500 950,000 2,288,000 3,265,000 $7,641,500 On June 10, Blossom reacquired and cancelled 1,900 Class A common shares at a cost of $3.85 per share. On August 26, 2020, Blossom issued 3,800 Class A common shares for $8.55 each. On September 30, the company reacquired and cancelled another 1,900 Class A common shares at $8.55 per share. Prepare the journal entries required to record these transactions. (Round per share value to 4 decimal places, e.g. 1.2512 and final answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020:
Share capital:
Preferred shares, 90,000 issued and outstanding
Class A common shares, 190,000 issued and outstanding
Class B common shares, 440,000 issued and outstanding
Retained earnings
Total shareholders' equity
Date
June 10
On June 10, Blossom reacquired and cancelled 1,900 Class A common shares at a cost of $3.85 per share. On August 26, 2020,
Blossom issued 3,800 Class A common shares for $8.55 each. On September 30, the company reacquired and cancelled another 1,900
Class A common shares at $8.55 per share.
Aug. 26
Prepare the journal entries required to record these transactions. (Round per share value to 4 decimal places, e.g. 1.2512 and
final answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record
journal entries in the order presented in the problem.)
Account Titles and Explanation
Sept. 30
Common Shares
Contributed Surplus
Cash
Cash
Common Shares
Common Shares
Contributed Surplus
$1,138,500
Retained Earnings
950,000
Cash
2,288,000
3,265,000
$7,641,500
Debit
Credit
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