Borner Communications articles of incorporation authorized t

Borner Communications’ articles of incorporation authorized the issuance of 130 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:

Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), 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 7, 2018, Borner reacquired 2 million shares at $5 per share.

2. On August 23, 2018, Borner reacquired 4 million shares at $3.50 per share.

3. On July 25, 2019, Borner sold 3 million common shares at $6 per share.

Shareholders’ Equity	($ in millions)
Common stock, 100 million shares at $1 par	$	100
Paid-in capital—excess of par		300
Retained earnings		210

Solution

(In million $) Date General Journal Debit Credit Jan. 7, 2018 Treasury stock (2 million x $5) 10 Cash 10 (To record purchase of treasury stock) Jan. 7, 2018 Common stock (2 million x $1) 2 Paid-in capital-excess of par ($300m x 2m/100m) 6 Retained earnings 2 Treasury stock 10 (To record retirement of treasury stock) Aug. 23, 2018 Treasury stock (4 million x $3.50) 14 Cash 14 (To record purchase of treasury stock) Aug. 23, 2018 Common stock (4 million x $1) 4 Paid-in capital-excess of par ($300m x 4m/100m) 12 Retained earnings 2 Treasury stock 14 (To record retirement of treasury stock) Jul. 25, 2019 Cash (3 million x $6) 18 Common stock (3 million x $1) 3 Paid-in capital-excess of par (3 million x $5) 15 (To record issue of common stock)