Question

In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 210 million shares of its $1 par common stock at $45 per share. Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e. 10,000,000 should be entered as 10).) 1. On January 2, 2018, Borland reacquired 10 million shares at $43.50 per share. 2. On March 3, 2018, Borland reacquired 10 million shares at $47 per share. 3. On August 13, 2018, Borland sold 1 million shares at $53 per share. 4. On December 15, 2018, Borland sold 2 million shares at $47 per share: View transaction list Journal entry worksheet 1 2 3 4 Record the reacquisition of 10 million shares at $43.50 per share. Note: Enter debits before credits General Journal Debit Credit Date January 02, 2018

Answer 1

Answer :

(Amount in millions)

Date	Account title	Debit	Credit
Jan 02, 2018	common stock	$10
	Paid in capital of excess of par {10 × ($45 - $1)	$440
	Cash (10 × $1.5)		$15
	Paid in capital share repurchase (10 × $43.5)		$435
Mar 03, 2018	common stock	$10
	Paid in capital of excess of par {10 × ($45 - $1)}	$440
	Paid in capital share repurchase	$15
	Retained earnings	$5
	Cash (10 × $47)		$470
Aug 13, 2018	cash (1 × $53)	$53
	Common stock		$1
	Paid in capital excess of par (1 × $52)		$52
Dec 15, 2018	cash (2 × $47)	$94
	Common stock		$2
	Paid in capital excess of par {2 × ($47 - $1)}		$92