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Journal Entries In 2016, Borland Semiconductors entered into the transactions de

ID: 2562947 • Letter: J

Question

Journal Entries

In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had issued 195 million shares of its $1 par common stock at $38 per share

On December 15, 2016, Borland sold 2 million shares at $40 per share

1.) On January 2, 2016, Borland reacquired 13 million shares at $37.00 per share. 2.) On March 3, 2016, Borland reacquired 13 million shares at $40 per share. 3.) On August 13, 2016, Borland sold 1 million shares at $46 per share. 4.)

On December 15, 2016, Borland sold 2 million shares at $40 per share

Explanation / Answer

JOURNAL ENTRIES :

DATE ACCOUNTS & EXPLANATION DEBIT CREDIT 2016 jan 2 Treasury stock a/c (13*37) 481      Cash a/c 481 (To record shares reacquired) 2016 Mar 3 Treasury stock a/c (13*40) 520       Cash a/c 520 (To record shares reacquired) 2016 aug 3 Cash a/c 46     Treasury stock a/c 37      Paid in capital from sale of treasury stock 9 (To record sale of treasury stock) 2016 dec 15 Cash a/c (2*40) 80      Treasury stock a/c (2*37) 74       Paid in capital from sale of treasury stock 6 (To record sale of treasury stock)