In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 190 million shares of its $1 par common stock at $37 per share.

Required:

Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i. e., 10,000,000 should be entered as 10).)

1. On January 2, 2021, Borland reacquired 11 million shares at $36.00 per share.

2. On March 3, 2021, Borland reacquired 11 million shares at $39 per share.

3. On August 13, 2021, Borland sold 1 million shares at $45 per share.

4. On December 15, 2021, Borland sold 2 million shares at $39 per share.

Question

Poochie

Business

23 December, 04:19

In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 190 million shares of its $1 par common stock at $37 per share.

Required:

Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i. e., 10,000,000 should be entered as 10).)

1. On January 2, 2021, Borland reacquired 11 million shares at $36.00 per share.

2. On March 3, 2021, Borland reacquired 11 million shares at $39 per share.

3. On August 13, 2021, Borland sold 1 million shares at $45 per share.

4. On December 15, 2021, Borland sold 2 million shares at $39 per share.

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Answers (1)

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Gillian Irwin · Answer 1

common stock 11,000,000 debit

additional paid-in 385,000,000 debit

cash 396,000,000 credit

common stock 11,000,000 debit

additional paid-in 418,000,000 debit

cash 429,000,000 credit

cash 45,000,000 debit

common stock 1,000,000 credit

additional paid-in 44,000,000 credit

cash 78,000,000 debit

common stock 2,000,000 credit

additional paid-in 76,000,000 credit

Explanation:

As we assume the shares are retired there is no treasury stock or additional paid-in treasury stock we directly decrease common stock and additional paid-in for the amount of the purchased shares.

when new shares are sold we take it as annormal isuance of shares.