Transfixed Corporation Has 300,000 No Par Value Common Shares Authorized

question 71

Essay

Transfixed Corporation has 300,000 no par value common shares authorized, issued and outstanding which were all issued at $ 40 per share. On February 28, 2020, Transfixed reacquired 6,000 shares at a cost of $ 38 per share. On October 20, 2020, the company purchased and cancelled an additional 4,000 shares. The purchase cost was $ 44 per share.
Instructions
Prepare the journal entries to record the reacquisition of shares.

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Definitions:

Generating Sales

The process of creating revenue for a business through activities such as marketing, sales calls, and customer service.

Depletion Expense

The allocation of the cost of natural resources over their productive lives, recognizing the reduction in natural resource value as it is extracted and sold.

Mining Site

A specific area where minerals are extracted from the earth, which can include both underground and surface mining operations.

Depletion

The allocation of the cost of natural resources over their useful life, typically related to mining, quarrying, drilling, or timber operations.