On 1 January 20X5, AlbaCore Ltd. reported the following in shareholders’ equity:

Preferred shares, no-par value; authorized, unlimited shares; issued, 75,000 shares	$	1,875,000
Common shares, no-par value; authorized, unlimited shares;  issued, 550,000 shares		6,050,000
Contributed capital on retirement of preferred shares		20,000
Retained earnings		3,250,000

The company acquired and retired shares in the following sequence during 20X5:

1. Retired 15,000 common shares at $15 per share.
2. Retired 7,500 common shares at $9 per share.
3. Retired 6,500 preferred shares at $30 per share.
4. Retired 5,000 preferred shares at $22 per share.

Required:
1. Prepare journal entries for the share retirement transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Calculate the balances in each equity account, after the effects of the transactions in requirement 1.

Preferred shares
Common shares
Contributed capital on retirement of preferred shares
Contributed capital on retirement of common shares
Retained earnings

Answer rating: 100% (QA)

1 Date Account Titles Debit Credit 1 Common Shares 165000 1500011 Retained Earnings 600... View the full answer