Question

* Question 4 OAK Corporation has an unlimited number of common shares authorized and 90,000 common shares issued. At December 31, 2017, OAK had a balance in the Common Shares account of $198,000. On January 1, 2018 OAK reacquired and retired 9,300 common shares at a price of $1.95 cash per share. Prepare the journal entry for the reacquisition of shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry Required" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the journal entry for the reacquisition of shares assuming instead a price of $2.45 was paid and a balance of $1,300 in the Contributed Surplus account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry Required" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Maarian

Answer 1

Solution 2:
Date	Account Tttle	Debit	Credit
1-Jan	Common stock ($198000/90000)*9300	$20,460
	Retained earnings (bal)		$2,325
	Cash (9300*$1.95)		$18,135
Solution 2:
Date	Account Tttle	Debit	Credit
1-Jan	Common stock ($198000/90000)*9300	$20,460
	Contributed Surplus ($1300/90000*9300)	$134
	Retained earnings (bal)	$2,191
	Cash (9300*$2.45)		$22,785