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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