Bantam Ltd decided to repurchase 15% of its ordinary shares under a buyback scheme for ($3.20) per
Question:
Bantam Ltd decided to repurchase 15% of its ordinary shares under a buyback scheme for \($3.20\) per share. At the date of the buyback, the equity of Bantam Ltd consisted of:
The costs of the buyback scheme amounted to \($5\) 000.
Required
1. Prepare the journal entries to account for the buyback. Explain the reasons for the entries made.
2. Assume that the buyback price per share was equal to \($1.50\) per share. Prepare journal entries to record the buyback. Explain your answer.
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1 Any combination of equity accounts is correc...View the full answer
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Related Book For 
Financial Reporting
ISBN: 9780730396413
4th Edition
Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes
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