Shamrock Company had the following Shareholders’ Equity accounts as of May 1, 20

Question

Shamrock Company had the following Shareholders’ Equity accounts as of May 1, 2017:

      Total shareholders’ equity $7,242,500

On June 10, Shamrock reacquired and cancelled 1,300 Class A common shares at a cost of $4.10 per share. On August 26, 2017, Shamrock issued 2,200 Class A common shares for $8.20 each. On September 30, the company reacquired and cancelled another 1,500 Class A common shares at $7.90 per share.

Prepare the journal entries required to record these transactions

Share capital:       Preferred shares, 80,000 issued and outstanding $964,000       Class A common shares, 190,000 issued and outstanding 950,000       Class B common shares, 370,000 issued and outstanding 2,053,500 Retained earnings 3,275,000

      Total shareholders’ equity $7,242,500

On June 10, Shamrock reacquired and cancelled 1,300 Class A common shares at a cost of $4.10 per share. On August 26, 2017, Shamrock issued 2,200 Class A common shares for $8.20 each. On September 30, the company reacquired and cancelled another 1,500 Class A common shares at $7.90 per share.

Prepare the journal entries required to record these transactions

Explanation / Answer

June 10:

Treasury Stock Class A Dr 5330 (1300*4.10)

Cash Cr 5330

August 26:

Cash Dr 18040 (2200*8.20)

Class A Common stock Cr 18040

September 30:

Treasury Stock Class A Dr 11850 (1500*7.90)

Cash Cr 11850

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.