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27 November, 14:04

In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 170 million shares of its $1 par common stock at $34 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).) On January 2, 2021, Borland reacquired 10 million shares at $32.50 per share. On March 3, 2021, Borland reacquired 10 million shares at $36 per share. On August 13, 2021, Borland sold 1 million shares at $42 per share. On December 15, 2021, Borland sold 2 million shares at $36 per share.

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  1. 27 November, 14:31
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    See the explanation below:

    Explanation:

    a. On January 2, 2021, Borland reacquired 10 million shares at $32.50 per share.

    Detail Dr ($'M) Cr ($'M)

    Common Stock 10

    Paid-In Capital - Over Par value[ (34-1) * 10} 330

    Paid-In Capital-Share Repurchase 15

    Cash (10*32.5 325

    To record the repurchase of share

    b. On March 3, 2021, Borland reacquired 10 million shares at $36 per share.

    Detail Dr ($'M) Cr ($'M)

    Common Stock 10

    Paid-In Capital - Over par value [ (34-1) * 10} 330

    Paid-In Capital-Share Repurchase 15

    Retained Earnings 5

    Cash (10*36) 360

    To record the repurchase of share

    c. On August 13, 2021, Borland sold 1 million shares at $42 per share.

    Detail Dr ($'M) Cr ($'M)

    Cash 42

    Common Stock 1

    Paid-In Capital - Over Par value 41

    To record the sales of 1 million shares at $42 per share.

    d. On December 15, 2021, Borland sold 2 million shares at $36 per share.

    Detail Dr ($'M) Cr ($'M)

    Cash (2*36) 72

    Common Stock 2

    Paid-In Capital - Over Par value 70

    To record the sales of 2 million shares at $36 per share.
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