Question

On April 7, 2021, Mo’s Motor Corp. had a balance of $425,000 in its Common Shares account and the total number of shares issued was 34,000. On April 8, 2021, Mo’s paid $10,500 to reacquire 1,000 shares. On November 22, 2021, the company paid $35,000 to reacquire 2,500 shares. On December 30, the company issued 5,000 shares for $16.50 per share.

Determine the average per share amount on April 7 and November 22, 2021. (Round answer to 2 decimal places, Average per share amount

Answer 1

Average value of Shares on Apr'7
	Total Available balance/No. of Shares
	$425000/34000= $12.5
Average value of Shares on Apr'22
Calculation of Balance & Share on Nov'22
		Balance	Shares
		Value ($)	NO.
	Opening Balance	4,25,000	34,000
	Shares Reacquire on Apr'8 and cash paid	-10,500	1,000
	Shares Reacquire on Apr'22 and cash paid	-35,000	2,500
	Balance on Apr'22	3,79,500	37,500
	Average value of Shares on Apr'22
	$270500/37500= $10.12
Journal Entry
		Dr	Cr
		$	$
Apr.8	Common shares	10,500
	Cash		10,500
	Reacquire of 1000 shares
Nov.22	Common shares	35,000
	Cash		35,000
	Reacquire of 2500 shares
Dec.30	Cash ($5000*16.5)	82,500
	Common Shares		82,500
	Issue of 5000 shares
Common shares at the end of year
	Opening No.		34,000
	Reqcauire on Apr'8		1,000
	Reqcauire on Apr'22		2,500
	Issued on Dec'30		-5,000
	Common shares at the end of year		32,500