Franklin, Inc. had the following shareholders equity on November 30: Shareholders Equity Share Capital: Common Shares, unlimited number of shares


Franklin, Inc. had the following shareholders’ equity on November 30:

Shareholders’ Equity

Share Capital:

Common Shares, unlimited number of shares authorized,

50,000 shares issued and 45,000 shares outstanding......$400,000

Contributed Surplus (purchase of treasury shares, June 30)... 10,000

Retained Earnings.................. 520,000

Less: 5,000 Treasury Shares................ (40,000)

Total Shareholders’ Equity................$890,000

On December 30, Franklin, Inc. purchased another 8,000 treasury shares at $10 per share.


1. What is the average price per common share? What is the amount paid to purchase treasury shares on June 30?

2. Journalize the purchases of the treasury shares on June 30 and December 30.

3. Prepare the shareholders’ equity section of the balance sheet at December 31.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Related Book For  answer-question

Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: July 08, 2015 02:45:45