The December 31, 2018, Balance Sheet of MBI Company Included

question 162

Essay

The December 31, 2018, balance sheet of MBI Company included the following: $\begin{array}{|l|l|}\hline\text { Common stock, 20 million shares outstanding at } \$ 1 \text { par } & \$ 20,000,000 \\\hline \text { Paid-in capital-excess of par } & 100,000,000 \\\hline \text { Retained earnings } & 115,000,000\\\hline\end{array}$ MBI completed the following transactions in 2018 relating to treasury stock: $\begin{array}{|l|l|}\hline \text { March 17: } & \text { Reacquired } 2 \text { million shares at } \$ 10 \\\hline \text { May 17: } & \text { Reacquired 2 million shares at } \$ 9 \\\hline \text { August 10: } & \text { Issued 3 million shares at } \$ 12 \\\hline\end{array}$ Required:
Prepare journal entries to record the foregoing transactions on a weighted average basis.

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Definitions:

Opiates

A group of drugs, derived from the opium poppy, used to treat pain by mimicking the body’s pain-relieving chemicals, but can also lead to dependency.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Methadone

A synthetic opioid used for pain management and as part of drug addiction detox programs, particularly for heroin.

Placenta

A structure that forms in the uterus while pregnant, supplying the fetus with oxygen and nutrients while also eliminating waste via the umbilical cord.