Common shares, 600,000 authorized, 60,000 shares issued $500,000 Contributed surplus (from a 2010 retirement of common shares 11,000 Retained earnings $1,500,000 Equity as of December 31, 2020 The following transactions related to the company's shares took place during 2021 September 14th, 2021 Purchased and retired shares 5000 at $12 per share December 5th, 2021 Purchased and retired shares 2000 at $14 per share Prepare the journal entries for the above transactions. and Re-create the equity but with updated figures to reflect the amounts to be reported on December 31, 2021, assuming that they reported net income in 2021 of $65,000
Common shares, 600,000 authorized, 60,000 shares issued $500,000 Contributed surplus (from a 2010 retirement of common shares 11,000 Retained earnings $1,500,000 Equity as of December 31, 2020 The following transactions related to the company's shares took place during 2021 September 14th, 2021 Purchased and retired shares 5000 at $12 per share December 5th, 2021 Purchased and retired shares 2000 at $14 per share Prepare the journal entries for the above transactions. and Re-create the equity but with updated figures to reflect the amounts to be reported on December 31, 2021, assuming that they reported net income in 2021 of $65,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Common shares, 600,000 authorized, 60,000 shares issued | $500,000 |
| Contributed surplus (from a 2010 retirement of common shares | 11,000 |
| Retained earnings | $1,500,000 |
Equity as of December 31, 2020
The following transactions related to the company's shares took place during 2021
September 14th, 2021 Purchased and retired shares 5000 at $12 per share
December 5th, 2021 Purchased and retired shares 2000 at $14 per share
Prepare the
Re-create the equity but with updated figures to reflect the amounts to be reported on December 31, 2021, assuming that they reported net income in 2021 of $65,000
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