Sunland Company had the following Shareholders’ Equity accounts as of May 1, 2020:

Share capital:
Preferred shares, 60,000 issued and outstanding		$738,000
Class A common shares, 150,000 issued and outstanding		750,000
Class B common shares, 440,000 issued and outstanding		2,530,000
Retained earnings		3,285,000
Total shareholders’ equity		$7,303,000

On June 10, Sunland reacquired and cancelled 2,100 Class A common shares at a cost of $450 per share On August 26, 2020, Sunland issued 4,200 Class A common shares for $910 each On September 30, the company reacquired and cancelled another 2,100 Class A common shares at $910 per share.

 

Transcribed Image Text:

Date Account Titles and Explanation Debit Credit June 10 Common Shares 9000 Contributed Surplus 1530 Cash 7470 Aug. 26 Cash 30780 Common Shares 30780 Sept. 30 Common Shares 9000 Contributed Surplus 6390 Retained Earnings Cash 15,390 Date Account Titles and Explanation Debit Credit June 10 Common Shares 9000 Contributed Surplus 1530 Cash 7470 Aug. 26 Cash 30780 Common Shares 30780 Sept. 30 Common Shares 9000 Contributed Surplus 6390 Retained Earnings Cash 15,390

Answer rating: 100% (QA)

Journal Entry Par value of common share 750000150000 500 Date Account titles and e... View the full answer