1) Ayayai Limited has 55,500 common shares outstanding, with an average issue price per share...
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Accounting
1) Ayayai Limited has 55,500 common shares outstanding, with an average issue price per share of $6. On August 1, 2020, the company reacquired and cancelled 650 shares at $41 per share. There was contributed surplus of $0.25 per share at the time of the reacquisition (total $13,875), which arose from net excess of proceeds over cost on a previous cancellation of common shares. (a) Prepare the journal entry to record this transaction if Ayayai prepares financial statements in accordance with ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Aug. 1
Answer & Explanation
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