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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![On December 31, 2023, the shareholders' equity of Norway Corporation shows the following:
Common shares
$ 270,000
Contributed surplus
5,440
Retained earnings
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.
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.](https://content.bartleby.com/qna-images/question/b9c31f8f-5fa1-4391-b22b-948e453c2c73/6c85a086-0d1f-4598-9802-9c19058e3b8b/mhlf3ib_thumbnail.png)
Transcribed Image Text:On December 31, 2023, the shareholders' equity of Norway Corporation shows the following:
Common shares
$ 270,000
Contributed surplus
5,440
Retained earnings
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.
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.
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