Burlington Corp

question 62

Essay

Burlington Corp.has a single class of shares.As at its year ended December 31,2012,the company had 5,000,000 shares issued and outstanding.On the stock exchange,these shares were trading at around $7.In the company's accounts,these shares had a value of $50,000,000.The equity accounts also show $650,000 of contributed surplus from previous repurchases of shares.
On January 15,2013,Burlington repurchased and cancelled 250,000 shares at a cost of $7 per share.Later in the year,on August 20,the company repurchased and cancelled a further 475,000 shares at a cost of $14 per share.
Requirement:
Record the journal entries for the two share transactions in 2013.

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Definitions:

Chunking

A strategy for improving memory by breaking down information into smaller, manageable units or chunks.

Working Memory

A combination of components, including short-term memory and attention, that allow individuals to hold information temporarily as they perform cognitive tasks; a kind of mental workbench on which the brain manipulates and assembles information to guide understanding, decision making, and problem solving.

Explicit Memory

The conscious recall of facts and experiences that one can consciously declare or "declare."

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.