Wonder Ltd. has treasury stock transactions in 20X9 as follows: a. Feb. 27 Purchased 140,000 common shares as treasury stock at $6.50 per share. b. March 15 Purchased 64,000 common shares as treasury stock for $5.50 per share. c. April 30 Reissued 100,000 shares of treasury stock for $4.25 per share. d. May 16 Purchased 54,000 common shares as treasury stock for $6.05 per share. e. Nov. 26 Reissued 268,000 shares of treasury stock for $4 per share. At the end of 20X8, Wonder Limited had reported the following in shareholders’ equity: Common shares, no-par value; authorized, unlimited shares; issued, 5,800,000 shares, outstanding, 5,500,000 shares $ 21,117,000 Contributed capital on treasury stock transactions 133,600 Retained earnings 14,840,000 Treasury stock, 300,000 common shares (1,260,000) Required: 1. Prepare journal entries for the treasury stock transactions. Calculate the balances in the equity accounts, after the effects of the transactions in requirement 1.
Wonder Ltd. has
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a. |
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Feb. 27 |
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Purchased 140,000 common shares as treasury stock at $6.50 per share. |
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b. |
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March 15 |
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Purchased 64,000 common shares as treasury stock for $5.50 per share. |
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c. |
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April 30 |
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Reissued 100,000 shares of treasury stock for $4.25 per share. |
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d. |
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May 16 |
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Purchased 54,000 common shares as treasury stock for $6.05 per share. |
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e. |
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Nov. 26 |
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Reissued 268,000 shares of treasury stock for $4 per share. |
At the end of 20X8, Wonder Limited had reported the following in shareholders’ equity:
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Common shares, no-par value; authorized, unlimited shares; issued, 5,800,000 shares, outstanding, 5,500,000 shares |
$ 21,117,000 |
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Contributed capital on treasury stock transactions |
133,600 |
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14,840,000 |
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Treasury stock, 300,000 common shares |
(1,260,000) |
Required:
1. Prepare
- Calculate the balances in the equity accounts, after the effects of the transactions in requirement 1.
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