Enviro Corporation reported having 35,000 common shares issued for a total share capital of $140,000 on its December 31, 2011, statement of financial position. On February 15, 2012, it reacquired 5,000 of these shares. This is the first time Enviro has reacquired any of its shares.
Instructions
(a) Record the reacquisition of the shares, assuming the company paid $18,000 to reacquire them.
(b) Repeat part (a), assuming instead that the company paid $21,500 to reacquire the shares.