On January 1, 2017, the equity section of Bergin ASA shows share capital- ordinary (£5 par value) £1,500,000; share premium-ordinary £1,000,000; and retained earnings £1,200,000. During the year, the following treasury share transactions occurred.
Mar. 1 Purchased 50,000 shares for cash at £12 per share.
July 1 Sold 10,000 treasury shares for cash at £14 per share.
Sept. 1 Sold 8,000 treasury shares for cash at £10 per share.
Instructions
(a) Journalize the treasury share transactions.
(b) Restate the entry for September 1, assuming the treasury shares were sold at £9 per share.