Exercise 18-10 (Static) Retirement of shares [LO18-5] Borner Communications' articles of incorporation authorized the issuance of 130 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) $100 300 210 Shareholders' Equity Common stock, 100 million shares at $1 par Paid-in capital excess of par Retained earnings 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 2 million shares at $5 per share. 2. On August 23, 2021, Borner reacquired 4 million shares at $3.50 per share. 3. On July 25, 2022, Borner sold 3 million common shares at $6 per share.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 18-10 (Static) Retirement of shares [LO18-5]
Borner Communications' articles of incorporation authorized the issuance of 130 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:
Shareholders' Equity
Common stock, 100 million shares at $1 par
Paid-in capital excess of par
Retained earnings
($ in millions)
$100
300
210
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 2 million shares at $5 per share.
2. On August 23, 2021, Borner reacquired 4 million shares at $3.50 per share.
3. On July 25, 2022, Borner sold 3 million common shares at $6 per share.
Transcribed Image Text:Exercise 18-10 (Static) Retirement of shares [LO18-5] Borner Communications' articles of incorporation authorized the issuance of 130 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: Shareholders' Equity Common stock, 100 million shares at $1 par Paid-in capital excess of par Retained earnings ($ in millions) $100 300 210 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 2 million shares at $5 per share. 2. On August 23, 2021, Borner reacquired 4 million shares at $3.50 per share. 3. On July 25, 2022, Borner sold 3 million common shares at $6 per share.
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