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.

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 2 years ago

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