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

Solutions

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

Next > < Previous

Related Solutions

National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...

National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 7 million shares at $1 par $ 7,000,000 Paid-in capital—excess of par 63,000,000 Retained earnings 95,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 Reacquired...

National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...

National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 5 million shares at $1 par $ 5,000,000 Paid-in capital—excess of par 30,000,000 Retained earnings 98,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 Reacquired...

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 4 million shares at $1 par $ 4,000,000 Paid-in capital—excess of par 16,000,000 Retained earnings 73,000,000 Required: 1a. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 3 million shares at $1 par $ 3,000,000 Paid-in capital—excess of par 9,000,000 Retained earnings 71,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...

National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 7 million shares at $1 par $ 7,000,000 Paid-in capital—excess of par 63,000,000 Retained earnings 95,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February...

Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020:

Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020: ($ in millions)Paid-in capital: Common stock, 900 million shares at $1 par..................................$ 900 Paid-in capital—excess of par.............................................................15,800 Retained earnings....................................................................................14,888 Total shareholders’ equity..................................................................$31,588 On March 16, 2021, a 4% common stock dividend was declared and distributed. The market value of the common stock was $21 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. ...

The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par

The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par Paid-in capital—excess of par on common stock 7% cumulative convertible preferred stock, $100 par value Paid-in capital—excess of par on preferred stock Retained earnings Additional Information: • Proactive had 7 million shares of preferred stock authorized of which 2 million were outstanding. All 2 million shares outstanding were issued in 2015 for $112 a share. The preferred stock is convertible into common...

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2017: Paid-in capital: Preferred stock, 8.5%, 94,000 shares at $1 par $ 94,000 Common stock, 444,400 shares at $1 par 444,400 Paid-in capital—excess of par, preferred 1,555,000 Paid-in capital—excess of par, common 2,605,000 Retained earnings 9,345,000 Treasury stock, at cost; 4,400 common shares (44,000 ) Total shareholders' equity $ 13,999,400 During 2018, several events and transactions affected the retained earnings of Consolidated Paper. Required:...

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2017: Paid-in capital: Preferred stock, 7.5%, 82,000 shares at $1 par $ 82,000 Common stock, 323,200 shares at $1 par 323,200 Paid-in capital—excess of par, preferred 1,445,000 Paid-in capital—excess of par, common 2,495,000 Retained earnings 8,245,000 Treasury stock, at cost; 3,200 common shares (38,400 ) Total shareholders' equity $ 12,551,800 During 2018, several events and transactions affected the retained earnings of Consolidated Paper. Required:...

Subjects