Cullumber Corporation's general ledger includes the following account balances: Contributed Surplus Common Shares Retained Earnings $9,000 $270,000 $84,000 The Contributed Surplus account arose from net excess of proceeds over cost on a previous cancellation of common shares. The average cost of the common shares bought and cancelled in the first two transactions shown below is $30 per share. Assuming that the above balances existed before any of the transactions that follow, record the journal entries for each transaction.
Cullumber Corporation's general ledger includes the following account balances: Contributed Surplus Common Shares Retained Earnings $9,000 $270,000 $84,000 The Contributed Surplus account arose from net excess of proceeds over cost on a previous cancellation of common shares. The average cost of the common shares bought and cancelled in the first two transactions shown below is $30 per share. Assuming that the above balances existed before any of the transactions that follow, record the journal entries for each transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Corporation's general ledger includes the following account balances:
Contributed Surplus
Common Shares
Retained Earnings
The Contributed Surplus account arose from net excess of proceeds over cost on a previous cancellation of common shares. The
average cost of the common shares bought and cancelled in the first two transactions shown below is $30 per share.
Assuming that the above balances existed before any of the transactions that follow, record the journal entries for each transaction.
a.
b.
C.
d.
$9,000
$270,000
$84,000
e.
Bought and cancelled 500 shares at $36 per share.
Bought and cancelled 200 shares at $42 per share.
Sold 2,800 shares at $39 per share.
Sold 1,400 shares at $47 per share.
Bought and cancelled 800 shares at $50 per share.
Transcribed Image Text:(Round average per share cost to 3 decimal places, e.g. 40.355. Round answers to 0 decimal places, e.g. 5,275. List all
debit entries before credit entries. 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 0 for the amounts.)
No. Account Titles and Explanation
b.
C.,
d.
Debit
m
Credit
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