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Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following:

Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2023, the shareholders' equity of Norway Corporation shows the following: Common shares $ 270,000 Contributed surplus 5,440 Retained earnings 87,560 Total shareholders' equity $363,000 9,000 common shares were outstanding AT THE END OF THE YEAR. The balance in the contributed surplus account was a result of previous repurchases/cancellations of common shares when the repurchase price paid for the shares was less than average book value at that time. Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following: 1. Bought and cancelled 430 shares at $38/share. 2. Bought and cancelled 200 shares at $44/share 3. Issued 3,200 shares at $41/share. 4. Issued 1,500 shares at $47/share. 5. Bought and cancelled 1,000 shares at $50/share.
Transcribed Image Text:On December 31, 2023, the shareholders' equity of Norway Corporation shows the following: Common shares $ 270,000 Contributed surplus 5,440 Retained earnings 87,560 Total shareholders' equity $363,000 9,000 common shares were outstanding AT THE END OF THE YEAR. The balance in the contributed surplus account was a result of previous repurchases/cancellations of common shares when the repurchase price paid for the shares was less than average book value at that time. Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following: 1. Bought and cancelled 430 shares at $38/share. 2. Bought and cancelled 200 shares at $44/share 3. Issued 3,200 shares at $41/share. 4. Issued 1,500 shares at $47/share. 5. Bought and cancelled 1,000 shares at $50/share.
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