Total shareholders' equity $1,959,993 $1,777,502 Net earnings for the year ended December 31, 2015, is $367,530....
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Total shareholders' equity $1,959,993 $1,777,502 Net earnings for the year ended December 31, 2015, is $367,530. WestJet reported the following information in the notes to its 2015 financial statements: 1. During the year ended December 31, 2015, the Corporation purchased and cancelled a total of 4,719,690 shares (December 31, 2014 - 1,435,150) for total consideration of $123,813 (December 31, 2014 $39,431). The average book value of the shares repurchased was $4.73 per share (December 31, 2014-$4.70) and was charged to share capital. The excess of the market price over the average book value, including transaction costs, was $101,489 (December 31, 2014- $32,680) and was charged to retained earnings. Required: 1. Prepare the journal entry to record the share repurchase transaction. 2. Why do you think WestJet decided to repurchase the shares? Explain. Total shareholders' equity $1,959,993 $1,777,502 Net earnings for the year ended December 31, 2015, is $367,530. WestJet reported the following information in the notes to its 2015 financial statements: 1. During the year ended December 31, 2015, the Corporation purchased and cancelled a total of 4,719,690 shares (December 31, 2014 - 1,435,150) for total consideration of $123,813 (December 31, 2014 $39,431). The average book value of the shares repurchased was $4.73 per share (December 31, 2014-$4.70) and was charged to share capital. The excess of the market price over the average book value, including transaction costs, was $101,489 (December 31, 2014- $32,680) and was charged to retained earnings. Required: 1. Prepare the journal entry to record the share repurchase transaction. 2. Why do you think WestJet decided to repurchase the shares? Explain.
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Prepare the journal entry to record the share repurchase transaction Journal Entry Date Account Titles and Explanation Debit Credit Yearend Share Capi... View the full answer
Related Book For
Principles of Managerial Finance
ISBN: 978-0133507690
14th edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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