On July 1, 2021, Gameshop Corp., repurchased 2,000 shares of its outstanding common shares for $18 per share. Prepare journal entries for the transaction under each of the following independent assumptions: (1) The average cost of previously issued common shares was $20 per share; (2) The average cost of common shares previously issued was $10 per share and contributed surplus of $20,000 existed with respect to earlier common share repurchases; (3) The average cost of common shares previously issued was $10 per share and contributed surplus of $5,000 existed with respect to earlier common share repurchases.
On July 1, 2021, Gameshop Corp., repurchased 2,000 shares of its outstanding common shares for $18 per share. Prepare journal entries for the transaction under each of the following independent assumptions: (1) The average cost of previously issued common shares was $20 per share; (2) The average cost of common shares previously issued was $10 per share and contributed surplus of $20,000 existed with respect to earlier common share repurchases; (3) The average cost of common shares previously issued was $10 per share and contributed surplus of $5,000 existed with respect to earlier common share repurchases.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...
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On July 1, 2021, Gameshop Corp., repurchased 2,000 shares of its outstanding common shares
for $18 per share.
Prepare
(1) The average cost of previously issued common shares was $20 per share;
(2) The average cost of common shares previously issued was $10 per share and contributed
surplus of $20,000 existed with respect to earlier common share repurchases;
(3) The average cost of common shares previously issued was $10 per share and contributed
surplus of $5,000 existed with respect to earlier common share repurchases.
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