In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 150...

In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 150 million shares of its $1 par common stock at $42 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, 2021, Borland reacquired 9 million shares at $41.00 per share.

2. On March 3, 2021, Borland reacquired 9 million shares at $44 per share.

3. On August 13, 2021, Borland sold 1 million shares at $50 per share.

4. On December 15, 2021, Borland sold 2 million shares at $44 per share.

Solutions

Expert Solution

Journal entries
S.no.	Accounts title and explanations	Debit $	Credit $
02-Jan	Treasury stock (9000,000*41)	36,90,00,000
	Cash account			36,90,00,000
	(for purchase of treasury stock)

03-Mar	Treasury stock (9000,000*44)	39,60,00,000
	Cash account			39,60,00,000
	(for purchase of treasury stock)

13-Aug	Cash account (1000,000*50)	5,00,00,000
	Treasury stock (1000,000*41)		4,10,00,000
	Paid in capital-Treasury stock		90,00,000
	(for reissue of treasury stock)

15-Dec	Cash account (2000,000*44)	8,80,00,000
	Treasury stock (2000,000*41)		8,20,00,000
	Paid in capital-Treasury stock		60,00,000
	(for reissue of treasury stock)
Note: FIFO method is applied for selling off treasury stock.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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,...

In 2018, Borland Semiconductors entered into the following capital transactions described below. In 2014, Borland had...

In 2018, Borland Semiconductors entered into the following capital transactions described below. In 2014, Borland had issued 100 million shares of its $1 par common stock at $24 per share. Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions: On January 2, 2018, Borland reacquired 5 million shares at $22 per share. On April 30, 2018, Borland reacquired 5 million shares at $26 per share. On November 18, 2018, Borland...

In 2021, Western Transport Company entered into the treasury stock transactions described below. In 2019, Western...

In 2021, Western Transport Company entered into the treasury stock transactions described below. In 2019, Western Transport had issued 170 million shares of its $1 par common stock at $16 per share. Required: Prepare 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 23, 2021, Western Transport...

In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western...

In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 280 million shares of its $1 par common stock at $28 per share. Required: Prepare 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 23, 2018, Western Transport...

Described below are certain transactions of Pharoah Company for 2021: 1. On May 10, the company...

Described below are certain transactions of Pharoah Company for 2021: 1. On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one-year, 9% note for the balance. 3. On September 30, the company discounted at 11% its $220,000, one-year...

Described below are certain transactions of Lamar Company for 2018: 1. On May 10, the company...

Described below are certain transactions of Lamar Company for 2018: 1. On May 10, the company purchased goods from Fox Company for $71,500, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $91,200 from Rao Company, paying $27,600 in cash and giving a one-year, 9% note for the balance. 3. On September 30, the company discounted at 10% its $190,000, one-year...

Accounts and Notes Payable. Described below are certain transactions of Lamar Company for 2018: 1. On...

Accounts and Notes Payable. Described below are certain transactions of Lamar Company for 2018: 1. On May 10, the company purchased goods from Fox Company for $75,000, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $150,000 from Rao Company, paying $50,000 in cash and giving a one-year, 9% note for the balance. 3. On September 30, the company discounted at...

ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021:...

ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021: 1. On August 1, ABC Company sold common stock to owners in the amount of $100,000 and borrowed $200,000 from the local bank on a 10-month, 12% note payable. 2. On September 1, ABC Company purchased a piece of equipment costing $80,000 by paying $50,000 in cash and agreeing to pay the remainder within six months. The equipment was assigned a 5-year life and...

Dribnor Ltd entered into the following transactions and events during 2018. Do these transactions and events...

Dribnor Ltd entered into the following transactions and events during 2018. Do these transactions and events meet the Framework 2014 definitions of assets, liabilities, equity, income or expenses? Give reasons. (a) Dribnor entered into a contract with Melbourne Metal Manufacturers Ltd to purchase capital equipment at a cost of $1 million. Dribnor paid a 10% deposit, which was non refundable. (b) Dribnor has a regular program of maintaining its plant and equipment. In order to provide for this program, it...

In 2018, Poe’s Products completed the treasury stock transactions described below. January 2: Reacquired 12 million...

In 2018, Poe’s Products completed the treasury stock transactions described below. January 2: Reacquired 12 million shares at $18 per share. February 15: Sold 4 million shares at $25 per share. September 20: Sold 4 million treasury shares at $20 per share. Poe’s Products had issued 60 million shares of its $1 par common stock for $20 several years ago. Prepare any necessary journal entries to record the above transactions. Show all computations.

Subjects