Borner Communications' articles of incorporation authorized the issuance of 175 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: ($ in millions) Shareholders' Equity Common stock, 160 million shares at $1 par Paid-in capital - excess of par Retained earnings $160 480 270 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares). record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On January 7, 2021, Borner reacquired 4 million shares at $5.00 per share. 2. On August 23, 2021, Borner reacquired 6 million shares at $3.00 per share. 3. On July 25, 2022, Borner sold 5 million common shares at $7 per share. View transaction list View journal entry worksheet No Date General Journal 1 January 07, 2021 Common stock Paid-in capital - excess of par Retained earnings Cash Debit Credit 4 20 4 20 6 2 August 23, 2021 Common stock Paid-in capital - excess of par 18 18 Cash 6 Retained earnings 3 July 25, 2022 Cash Common stock Paid-in capital - excess of par 35 5 30
Borner Communications' articles of incorporation authorized the issuance of 175 million common shares. The transactions described below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: ($ in millions) Shareholders' Equity Common stock, 160 million shares at $1 par Paid-in capital - excess of par Retained earnings $160 480 270 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares). record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On January 7, 2021, Borner reacquired 4 million shares at $5.00 per share. 2. On August 23, 2021, Borner reacquired 6 million shares at $3.00 per share. 3. On July 25, 2022, Borner sold 5 million common shares at $7 per share. View transaction list View journal entry worksheet No Date General Journal 1 January 07, 2021 Common stock Paid-in capital - excess of par Retained earnings Cash Debit Credit 4 20 4 20 6 2 August 23, 2021 Common stock Paid-in capital - excess of par 18 18 Cash 6 Retained earnings 3 July 25, 2022 Cash Common stock Paid-in capital - excess of par 35 5 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Borner Communications' articles of incorporation authorized the issuance of 175 million common shares. The transactions described
below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following:
($ in millions)
Shareholders' Equity
Common stock, 160 million shares at $1 par
Paid-in capital - excess of par
Retained earnings
$160
480
270
Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares).
record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
1. On January 7, 2021, Borner reacquired 4 million shares at $5.00 per share.
2. On August 23, 2021, Borner reacquired 6 million shares at $3.00 per share.
3. On July 25, 2022, Borner sold 5 million common shares at $7 per share.
View transaction list
View journal entry worksheet
No
Date
General Journal
1
January 07, 2021
Common stock
Paid-in capital - excess of par
Retained earnings
Cash
Debit
Credit
4
20
4
20
6
2
August 23, 2021
Common stock
Paid-in capital - excess of par
18
18
Cash
6
Retained earnings
3
July 25, 2022
Cash
Common stock
Paid-in capital - excess of par
35
5
30
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