21) In the majority of cases, an organization cancels the shares they repurchase.
22) Obus Corporation has issued 75,000 common shares. The average issuance price was $23 per share. Obus Corporation recently engaged in the following share repurchase transactions:
a.Purchased 15,000 shares of its own shares at $25.00 per share.
b.Sold 2,500 shares of the repurchased shares for $25.50 per share.
c.Sold the remaining 12,500 shares of repurchased shares for $24.00 per share.
Prepare journal entries to record the above transactions.
23) For the following two transactions, prepare the required journal entries:
a.On September 9, 2010 Ennismore Inc. (Ennismore) announced that it would be repurchasing up to 1,700,000 of its common shares on the open market. On September 16, 2010 Ennismore repurchased 1,360,000 shares for $17,000,000. On the date of the repurchase Ennismore had 34,000,000 shares outstanding and the amount in the Common Shares account was $68,000,000.
b.On November 20, 2010 Bridgenorth Ltd. (Bridgenorth) announced that it would be repurchasing up to 725,000 of its common shares on the open market. On November 25, 2010 Bridgenorth repurchased 652,500 shares for $4,350,000. On the date of the repurchase Bridgenorth had 7,250,000 shares outstanding and the amount in the Comm