Question

In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 165 million shares of its $1 par common stock at $27 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 12 million shares at $25.50 per share.On March 3, 2021, Borland reacquired 12 million shares at $29 per share.On August 13, 2021, Borland sold 1 million shares at $35 per share.On December 15, 2021, Borland sold 2 million shares at $29 per share

Answer 1

Jan 2

Dr Common Stock 12

DrPaid-In Capital (Excess of Par) 312

Cr Paid-In Capital (Share Repurchase)18

Cr Cash 306

Mar 3

Dr Common Stock 12

Dr Paid-In Capital (Excess of Par) 312

Dr Paid-In Capital (Share Repurchase)18

Dr Retained earnings 6

Cr Cash 348

Aug 13

Dr Cash 35

Cr Common Stock 1

Cr Paid-In Capital (Excess of Par) 34

Dec 15

Dr Cash 58

Cr Common Stock 2

Dr (Paid-In Capital (Excess of Par) 56

Step-by-step explanation:

Borland Semiconductors Journal entries

Jan 2

Dr Common Stock 12

(12 million shares × $1 par)

DrPaid-In Capital (Excess of Par) 312

(12 million shares × $26*)

$27 – $1 par.

Cr Paid-In Capital (Share Repurchase)18

Cr Cash 306

(12 million shares × $25.50)

To Record Reacquiring of Shares

Mar 3

Dr Common Stock 12

(12 million shares × $1 par)

Dr Paid-In Capital (Excess of Par) 312

(12 million shares × $26*)

$27 – $1 par.

Dr Paid-In Capital (Share Repurchase)18

Dr Retained earnings 6

Cr Cash 348

(12 million shares × $29)

To Record Reacquiring of Shares

Aug 13

Dr Cash 35

( 1 million shares ×$35 per share)

Cr Common Stock 1

(1 million shares × $1)

Cr Paid-In Capital (Excess of Par) 34

To Record Sale of Shares

Dec 15

Dr Cash 58

(2 million shares × $29 per share)

Cr Common Stock2

(2 million shares × $ 1 per share)

Cr (Paid-In Capital (Excess of Par) 56

To Record Sale of Shares