On December 31, 2023, the shareholders' equity of Norway Corporation shows the following: $ 270,000 5,440...

 

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On December 31, 2023, the shareholders' equity of Norway Corporation shows the following: $ 270,000 5,440 87,560 Total shareholders' equity $363,000 9,000 common shares were outstanding AT THE END OF THE YEAR. The balance in the contributed surplus account was a result of previous repurchases/cancellations of common shares when the repurchase price paid for the shares was less than average book value at that time. Common shares Contributed surplus Retained earnings Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following: 1. Bought and cancelled 430 shares at $38/share. 2. Bought and cancelled 200 shares at $44/share 3. Issued 3,200 shares at $41/share. 4. Issued 1,500 shares at $47/share. 5. Bought and cancelled 1,000 shares at $50/share. On December 31, 2023, the shareholders' equity of Norway Corporation shows the following: $ 270,000 5,440 87,560 Total shareholders' equity $363,000 9,000 common shares were outstanding AT THE END OF THE YEAR. The balance in the contributed surplus account was a result of previous repurchases/cancellations of common shares when the repurchase price paid for the shares was less than average book value at that time. Common shares Contributed surplus Retained earnings Required: Assume that the above balances existed before any of the following transactions took place. Record the journal entries for the following: 1. Bought and cancelled 430 shares at $38/share. 2. Bought and cancelled 200 shares at $44/share 3. Issued 3,200 shares at $41/share. 4. Issued 1,500 shares at $47/share. 5. Bought and cancelled 1,000 shares at $50/share.

Answer rating: 100% (QA)

Lets record the journal entries for each of the transactions Transaction 1 Bought and cancelled 430 ... View the full answer