Reference no: EM132495330
On December 31, 2020, the shareholders' equity of Finland Corporation shows the following:
Common shares-9,000 shares outstanding....................................... $ 270,000
Contributed surplus........................................................................... 4,440
Retained earnings.............................................................................. 88,560
Total shareholders' equity.................................................................. $ 363,000
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.
Required:
Question 1: 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.
4. Issued 1,500 shares at $47.
5. Bought and cancelled 1,000 shares at $50.