Question

In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of its $1 par common stock at $33 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 9 million shares at $32.00 per share 2. On March 3, 2018, Borland reacquired 9 million shares at $35 per share. 3. On August 13, 2018, Borland sold 1 million shares at $41 per share. 4. On December 15, 2018, Borland sold 2 million shares at $35 per share. View transaction list 1 Record the reacquisition of 9 million shares at $32.00 per share. 2 Record the reacquisition of 9 million shares at $35 per share. 3 Record the sale of 1 million shares at $41 per share. 4 Record the sale of 2 million shares at $35 per share. Credit

Answer 1

When the stock are repurchase for retirement, Common stock account is debited at par value, Paid in capital in Excess of par is debited at which those shares were issued and if any amount is remaining then retained earnings are debited and cash is credited Sr. No. 1 (Amount in Million) Debit Credit $9 [9 x $1] $288 [9 x $32] $9 [9 x $1] $288 [9 x $32] 2 $9 $288 $18 Date Account Title Jan 2,18 Common Stock Paid in Capital in Excess of Par- Common Stock Retained Earnings Cash (To record retirement of common stock) Mar 3,18 Common Stock Paid in Capital in Excess of Par- Common Stock Retained Earnings Cash (To record retirement of common stock) Aug 13, 18 Cash Common Stock Paid in Capital in Excess of Par- Common Stock (To record issue of common stock) Dec 15, 18 Cash Common Stock Paid in Capital in Excess of Par-Common Stock (To record issue of common stock) [9 x $1] [9 x $32] [9 x $2] $315 [9 x $35] 3 S41 [1 x $41] $1 [1 x $1] $40 (1 x $40] 4 $70 [2 x $35] $2[2 x $1] $68 [1 x $34]