Question 58 (1 point) Blue Star Films issues 200000 no-par value shares for $60

Question

Question 58 (1 point) Blue Star Films issues 200000 no-par value shares for $60 per share in 2015. Three years later,it repurchases 30,000 of these shares for $80 per share. Blue Star records the repurchase in which of the following ways? Debit Cash for $2.4 million, credit Common shares for $1.8 million and credit retained earnings for $600,000 Debit Common Shares for $600,000 million and cash for $1.8 million and credit Contributed capital for $2.4 million Debit Common Shares for $1.8 million and retained earnings for $600,000 and credit Cash for $2.4 million. Debit Common Shares for $1.8 million and contributed surplus for $600,000 and credit cash for $2.4 million.

Explanation / Answer

ans) Option (C)

Common shares $1.8 million

Retained earnings $600,000

Cash $2.4 Million

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