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.

---

Definitions:

Cash Prizes

Monetary awards given to contestants or participants in competitions, contests, or sweepstakes as a form of incentive or reward.

Campus Arrests

Detentions or apprehensions occurring on college or university grounds, typically by campus security or local law enforcement.

Drinking

The act of consuming liquids, often specifically referring to the consumption of alcoholic beverages.

College Campus

The physical grounds and buildings of a college or university where academic and social activities take place.