Prepare Journal entry for share retirement transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 1 January 2015, Shaw Inc. reported the following in shareholders' equity:
Preferred shares, no-par value; authorized, unlimited shares;
issued, 70,000 shares
Common shares, no-par value; authorized, unlimited shares; issued,
540,000 shares
Contributed capital on retirement of preferred shares
Retained earnings
$1,680, 000
5,400,000
18,000
3,200,000
The company acquired and retired shares in the following sequence during 2015:
1. Retired 14,000 common shares at $14 per share.
2. Retired 7,000 common shares at $8 per share.
3. Retired 6,000 preferred shares at $29 per share.
4. Retired 4,500 preferred shares at $21 per share.
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