Westside Corp. issued 2,000,000 common shares at $9 a share during April, Year 1. On September 23, Year 7, Westside Corp. repurchased 100,000 shares for $13 a share. On September 23, Year 7, the Contributed Surplus account had a $78,000 credit balance arising from a previous share repurchase. Westside Corp. is incorporated under the CBCA and, therefore, retired these shares. Required Prepare a journal entry to record the repurchase of the shares.
Westside Corp. issued 2,000,000 common shares at $9 a share during April, Year 1. On September 23, Year 7, Westside Corp. repurchased 100,000 shares for $13 a share. On September 23, Year 7, the Contributed Surplus account had a $78,000 credit balance arising from a previous share repurchase. Westside Corp. is incorporated under the CBCA and, therefore, retired these shares. Required Prepare a journal entry to record the repurchase of the shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Westside Corp. issued 2,000,000 common shares at $9 a share during April, Year 1.
On September 23, Year 7, Westside Corp. repurchased 100,000 shares for $13 a
share. On September 23, Year 7, the Contributed Surplus account had a $78,000
credit balance arising from a previous share repurchase. Westside Corp. is
incorporated under the CBCA and, therefore, retired these shares.
Required
Prepare a journal entry to record the repurchase of the shares.
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