A company’s shareholders’ equity section at December 31, 20x2 included the following items: Common shares, 101470...

A company’s shareholders’ equity section at December 31, 20x2 included the following items: Common shares, 101470 shares outstanding $681092 The following transactions took place during the year 20x3: February 15 Issued 19446 shares for $170295 cash July 10 Retired 35694 shares for $395937 cash Which of the following would be correct as part of the July 10, 20x3 journal entry to record the retirement of the shares? Select one: a. Debit to Common Shares for $395937 b. No entry will be recorded. c. Crebit to R/E for $144610 d. Debit to R/E for $144610

Expert Solution


	Number	Amount	Per share value
Common stock	101470	681092	6.71
Issued stock	19446	170295	8.76
Total	120916	851387	7.04

Retired	35694	395937	11.09
Loss per share			4.05	(11.09-7.04)
Charged to Retained earnings			144,610

Hence, debited to retained earnings by d) 144,610 is correct answer.

ekkarill92 answered 1 year ago

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A company’s shareholders’ equity section at December 31, 20x2 included the following items: Common shares, 101470...

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