Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1) ayayai limited has 55,500 common shares outstan

1) Ayayai Limited has 55,500 common shares outstanding, with an average issue price per share...

60.1K

Verified Solution

Question

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 Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Use the following cash flow with a 5% discount rate: Year Cash Flow 0 -$ 80,000 1 20,000 2...

Calculus
1.2K views

If the tangent line to y f x at 6 5 passes through the point...

Algebra
1.2K views

Look at this graph 0 1 2 3 4 5 6 7 8 9 10

Algebra
1.2K views

2 a m 0 3 b m 4 c m 1 L Find the slope...

Accounting
1.2K views

Briefly describe the steps that are used to develop a forecasting system

Accounting
1.2K views

Chester's Balance Sheet has $60,237,936 in equity. Further, the company is expecting $3,000,000 in net...

Accounting
1.2K views

please help The standards for one case of Springfever Tonic...

Accounting
1.2K views

What does the 'K' stand for K - nearest - neighbours?

Accounting
1.2K views

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is...

Accounting
1.2K views

Seminoles Corporation's fiscal year-end is December 31, 2015. The following is a partial adjusted trial...

Accounting
1.2K views

Coolbrook Company has the following information available for the past year: The company's hurdle rate...

Accounting
1.2K views

Brandon, an individual, began business four years ago and has sold 1231 assets with $5,550...