On October 10, 2014, the equity account balances for Bushnell, Inc., showed the following: Common shares, unlimited

Question:

On October 10, 2014, the equity account balances for Bushnell, Inc., showed the following:

Common shares, unlimited shares authorized,

36,000 shares issued, and outstanding ......................................................... $561,600

Retained earnings............................................................................................. 518,400

On October 11, 2014, the corporation repurchased for treasury 4,500 common shares at $36 per share.

Required

a. Prepare the equity section of the balance sheet on October 11, 2014, after the repurchase.

b. Journalize the following transactions for Bushnell Inc.:

(i) The purchase of the treasury shares on October 11.

(ii) The sale of 1,500 treasury shares on November 1 for cash at $45.60 per share.

(iii) The sale of all the remaining treasury shares on November 25 for cash at $28.80 per share.

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