Pixel Points Inc

question 75

Essay

Pixel Points Inc. has a single class of shares. As at its year ended December 31, 2020, the company had 1,000,000 shares issued and outstanding. These shares have a book value of $5,000,000 on the balance sheet.
During 2021, Pixel Points repurchased 5% of the issued shares from one of the minority shareholders at a cost of $7 per share. The company held these shares in treasury and later found a buyer for half of these shares at $8 per share. The other shares were sold at $6 to another investor.
Required:
Assume the Pixel Points fallows the guidance in ASPE pertaining to accounting for equity transactions. Record the share transactions using the two-transaction method for treasury shares.

---

Definitions:

Navigation Group

A set of user interface elements grouped together to facilitate movement through information or documents.

Top Margin

The space between the top edge of a page and the first line of text or content.

Header Button

A control in software that allows users to configure or modify the header section of a document or table.

Page Layout View

A view in document editing software that displays the document as it would appear on the printed page, including margins, headers, and footers.