Question

Borner Communications’ articles of incorporation authorized the issuance of 180 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:

Shareholders' Equity	($ in millions)
Common stock, 165 million shares at $1 par	165
Paid-in capital—excess of par	495
Retained earnings	275

Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), 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 7, 2018, Borner reacquired 4 million shares at $4.50 per share.
2. On August 23, 2018, Borner reacquired 6 million shares at $3.50 per share.
3. On July 25, 2019, Borner sold 5 million common shares at $8 per share.

Answer 1

KRoane communications aaticles of ncos posation Tournal sntaies fox BOmes commumicahon $4-50 Pes shaue pccounk Name Debitー |CYed't 0n 18 common stock (zimnxs Po0) paid in ca pita-excess of pos (amnx s 3) 512 Retained farnings caiffesenco) $18 TO serord the seacauistion of mn share by bomes を 165 ss3 on pug 29 01 B0mes reacauiked 6mn shaaea sope sbaxe Dake Account Nome Debit credi 2018 Pald in capiiol inexcess of Pos (6mnx 18 TO Paid m capitol-shax aepuachase To cash C6mnx S 3.5) mn shaae by bosnes)

on uy 25 2019 Gornes sold smn common shoag @ F&re 020 pak ccount Name to common stock (smnX $ 1P03) ToPaid incapita excess of paCdife) to 3e coad the sale or smn common 2019 s.35 shares)