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In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 175...

In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 175 million shares of its $1 par common stock at $30 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).)

On January 2, 2018, Borland reacquired 9 million shares at $28.00 per share.

On March 3, 2018, Borland reacquired 9 million shares at $33 per share.

On August 13, 2018, Borland sold 1 million shares at $38 per share.

On December 15, 2018, Borland sold 2 million shares at $33 per share.

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Expert Solution

Journal Entry for 2015: When 175 million shares issued Calculation Note
Account Million $ (Dr.) Million $ (Cr.)
Bank         5,250.00 175*30 Issue Price        30.00
Common Stock            175.00 175*1 Par Value          1.00
Additional paid-in capital, common stock         5,075.00 175*29        29.00 $ 29 per share to be credited to additional paid in capital.
(being 175 million shares of par value $1 issued at $30 per share.
Date Account Million $ (Dr.) Million $ (Cr.)
January.2, 2018 Common Stock                 9.00 9*1 Issue Price        30.00
Additional paid-in capital, common stock            261.00 9*29 Buy price        28.00
Bank            252.00 9*28          2.00 $ 2 per share to be credited Retained Earnings.
Retained Earnings              18.00 9*2
(being 9 million share of par value $1 bought back at $28 per share.
Mar.3, 2018 Common Stock                 9.00 9*1 Issue Price        30.00
Additional paid-in capital, common stock            261.00 9*29 Buy price        33.00
Retained Earnings               27.00 9*3          3.00 $ 3 per share to be debited to Retained Earnings.
Bank            297.00 9*33
(being 9 million share of par value $1 bought back at $33 per share.
August.13, 2018 Bank               38.00 1*38 Issue Price        38.00
Common Stock                 1.00 1*1 Par Value          1.00
Additional paid-in capital, common stock              37.00 1*37        37.00 $ 37 per share to be credited to additional paid in capital.
(being 1 million share of par value $1 issued at $38 per share.
December.15, 2018 Bank               66.00 2*33 Issue Price        33.00
Common Stock                 2.00 2*1 Par Value          1.00
Additional paid-in capital, common stock              64.00 2*32        32.00 $ 32 per share to be credited to additional paid in capital.
(being 2 million share of par value $1 issued at $33 per share.

ekkarill92 answered 8 months ago
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