Question: Belle Ltd. (BL) is a private corporation that elects to report its financial results in accordance with ASPE. On January 1, 2021, BL, a newly

Belle Ltd. (BL) is a private corporation that elects to report its financial results in accordance with ASPE. On January 1, 2021, BL, a newly incorporated company, issued (sold) 5,000, $10 par value, common shares for $25 each. On January 1, 2022, BL paid $27,000 to repurchase 1,000 of its shares.

Required:

a. Prepare the journal entry to record the sale of the shares.

b. Prepare the journal entry to record the repurchase of the shares.

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