Exercise 18-10 (Algo) Retirement of shares [LO18-5]Borner Communications' articles of incorporation authorized the issuance of 125 million common shares. The transactions describedbelow effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following:Shareholders' EquityCommon stock, 110 million shares at $1 parPaid-in capital - excess of parRetained earnings($ in millions)$ 110330220Required: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:Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin millions (i.e., 10,000,000 should be entered as 10).1. On January 7, 2024, Borner reacquired 4 million shares at $6.00 per share.2. On August 23, 2024, Borner reacquired 6 million shares at $3.50 per share.3. On July 25, 2025, Borner sold 5 million common shares at $7 per share. Exercise 18-12 (Algo) Treasury stock [LO18-5]In 2024, Western Transport Company entered into the treasury stock transactions described below. In 2022, Western Transport hadissued 200 million shares of its $1 par common stock at $20 per share.Required:Prepare the appropriate journal entry for each of the following transactions:Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin millions (i.e., 10,000,000 should be entered as 10).1. On January 23, 2024, Western Transport reacquired 15 million shares at $23 per share.2. On September 3, 2024, Western Transport sold 1 million treasury shares at $24 per share.3. On November 4, 2024, Western Transport sold 1 million treasury shares at $21 per share.

Since you have posted two different questions, we will do the first one for you. Please post the other question separately.Introduction:Journal Entry is the primary step in recording the transactions in the books of accounts.The increase in the assets is debited while increase the liabilities is credited.Expenses incurred are debited while revenue earned is credited.Paid-in capital excess of par = $330Paid-in capital excess of par per share = $330 / 110= $3 per share(in millions)(in millions)DateAccount Titles and ExplanationsDebitCreditJanuary 07, 2024Common stock$4Paid-in capital—excess of par (4*3)$12Retained earnings$8Cash (4*6)$24(To record re-acquistion of shares)August 23, 2024Common stock$6Paid-in capital—excess of par (6*3)$18Paid-in capital—share repurchase$18Cash (6*3.5)$21(To record re-acquisition of shares)July 25, 2025Cash (5*7)$35Common stock$5Paid-in capital—excess of par$30(To record sale of common shares)