Question

1. Cal Cookie Company (CCC) has 100 million shares of $1 par common stock authorized. The transactions below caused changes in CCC's outstanding shares. January 4, Repurchased and retired 2.20 million shares at 2018: $7.80 per share. 25, Repurchased and retired 3.20 million shares at 2018: $3.20 per share. June Prior to the transactions, CCC's shareholders' equity included the following: Common stock, 79.80 million shares at S 79.800.000 $1 par Paid-in capital - excess of par 255,360,000 Retained earnings 118,000,000 Required: Prepare the journal entry to record the repurchase and retirement of the shares. (Do not round your per share amounts. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) 1. Repurchased and retired 2.20 million shares at $7.80 per share. 2. Repurchased and retired 3.20 million shares at $3.20 per share.

Answer 1

Date Particular working Debit credit (in millions) (in millions) Jan 4 2018 Common stock a/c dr. Paid in capital a/c dr (Note) Retained earnings (bal fig.) To Cash a/c (being shares purchased and retired) $ $ $ 2.20 7.04 7.92 (2.2 million*$1) (2.2 million *$3.2) $ 17.16 (2.2 million $7.8) $ $ 3.20 10.24 June 25 2018 Common stock a/c dr. Paid in capital a/c dr (Note) To share repurchase diff To Cash a/c (being shares purchased and retired) (3.2 million*$1) (3.2 million*$3.2) 3.20 10.24 (3.2 million*$3.2) $ $ Note Total paid in capital/Total coomon stock value = 255360000/79800000 3.2 per share