O Inc.’s shareholders’ equity section at December 31, 20x8 was as follows: Commo

Question

O Inc.’s shareholders’ equity section at December 31, 20x8 was as follows:

Common shares, 62876 shares outstanding

$880764

Contributed Surplus – reacquisition of common shares

43975

Retained Earnings

812517

The following transactions took place during the year, 20x9:

Jan 30

Issued 7157 common shares for $105253 cash

July 15

Retired 9305 common shares for $155000 cash

What is the balance in the Common Shares account at December 31, 20x9?

Common shares, 62876 shares outstanding

$880764

Contributed Surplus – reacquisition of common shares

43975

Retained Earnings

812517

Explanation / Answer

Calculation of balance in the Common Shares account at December 31, 20x9 Particulars   No' of Common Shares Par Value Common Shares Contributed Surplus – reacquisition of common shares Reained Earnings equity section at December 31, 20x8 $                                 62,876 $                            14 $                      8,80,764 $                                                43,975 $                8,12,517 Below Transaction are during the year Add: Jan -10, Issued Common Shares $                                    7,157 $                            14 $                      1,00,255 $                                                  4,998 Less: 'July - 15, Retired 9305 Shares   $                                    9,305 $                            14 $                      1,30,344 $                                                24,656 Total   $                                 60,728 $                      8,50,675 $                                                24,317 $                8,12,517 Answer = Balance in Common Shares = 60, 728 Shares and value is the $ 850,675

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