Question

On February 7, 2021, Wildhorse Corp. had a balance of $390,600 in its Common Shares account and the total number of shares issued was 31,000. On February 8, 2021, Wildhorse paid $12,500 to reacquire 1,200 shares. On December 22, 2021, the company paid $38,000 to reacquire 2,400 shares.

Determine the average per share amount on February 7 and December 22, 2021. (Round answers to 2 decimal places, e.g. 52.76.) Average per share amount on February 7, 2021 $enter a dollar amount rounded to 2 decimal places Average per share amount on December 22, 2021 $enter a dollar amount rounded to 2 decimal places SHOW LIST OF ACCOUNTS

Record the two transactions in which Wildhorse reacquired its shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 7 enter an account title to record reacquisition of common shares on February 7 enter a debit amount enter a credit amount enter an account title to record reacquisition of common shares on February 7 enter a debit amount enter a credit amount enter an account title to record reacquisition of common shares on February 7 enter a debit amount enter a credit amount (To record reacquisition of common shares.) Dec. 22 enter an account title to record reacquisition of common shares on December 22 enter a debit amount enter a credit amount enter an account title to record reacquisition of common shares on December 22 enter a debit amount enter a credit amount enter an account title to record reacquisition of common shares on December 22 enter a debit amount enter a credit amount enter an account title to record reacquisition of common shares on December 22 enter a debit amount enter a credit amount (To record reacquisition of common shares.)

Answer 1

Answer:

(a)      Average per share amount: $12.60 ($390,600 ÷ 31000)

          This average is applicable at both dates: Feb. 7, 2021 and Dec. 22, 2021

(b)

Feb.         8      Common Shares (1,200 × $12.60).......................        15120

                              Contributed Surplus—

                              Reacquisition of Common Shares.................. 2620

                              Cash...............................................................                               12500

Dec.       22      Common Shares (2,400 × $12.60).......................        30240

                        Contributed Surplus—

                        Reacquisition of Common Shares........................          2,620

                        Retained Earnings................................................             5140

                              Cash............................................................... 38,000