Question

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 sold 3 million shares at $32 per share.

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
January 02, 2018	Common Stock (5 million Shares X $ 1)	$5
	Paid in Capital - Excess of Par (5 million shares X $ 23)	$115
	To Cash		$110
	To Paid in Capital - Shares Repurchase		$10
	(To Record the purchase of shares for cancellation )
	Common Stock (5 million Shares X $ 1)	$5
April 30, 2018	Paid in Capital - Excess of Par (5 million shares X $ 23)	$115
	Paid in Capital - Share Repurchase	$10
	To Cash		$130
	(To Record the purchase of shares for cancellation )
	Cash ( 3million shares X $ 32)	$96.00
November 18, 2018	To Common Stock (3 million Shares X $ 1)		$3
	To Paid in Capital - Excess of Par (3 million shares X $ 31)		$93
	(To Record the fresh issue of the shares )