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Exercise 18-10 (Algo) Retirement of shores [LO18-5) Borner Communications articles of incorporation authorized the issuance o
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but u record th
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Answer #1
Pain in Capital per Share = $ 435 / 145 = $ 3
No. Date Accounts titles and Explanation Debit
(in $ millions)
Credit
(in $ millions)
1 January 07,2021 Common stock
( 4 million x $ 1 )
$ 4
Paid-in capital - excess of par
( 4 million x $ 3 )
$ 12
Retained earnings $ 8
              Cash
               ( 4 million x $ 6 )
$ 24
2 August 23, 2021 Common stock
( 6 million x $ 1 )
$ 6
Paid-in capital - excess of par
( 6 million x $ 3 )
$ 18
             Paid-in capital - share repurchase $ 3
              Cash
               ( 6 million x $ 3.50 )
$ 21
3 July 25, 2022 Cash
( 5 million x $ 7 )
$ 35
          Common stock      
          ( 5 million x $ 1 )
$ 5
          Paid-in capital - excess of par $ 30
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