Chapter 6
Corporations: Contributed Capital and Dividends
315
c) Prepare the shareholders’ equity section of the balance sheet as at December 31, 2016.
AP-20B
(
11
)
On June 30, 2016, Choibok Corp. had 350,000 outstanding common shares. Its balance sheet
on June 30, 2016 shows the common shares balance of $875,000 and the contributed surplus
balance of zero. The following are the only changes to Choibok Corp.’s common shares that
occurred after June 30, 2016.
On July 1, 2016, Choibok Corp. paid $30,000 cash to reacquire 15,000 of its own common
shares.
On October 1, 2016, Choibok Corp. reacquired an additional 30,000 shares for $90,000 cash.
On December 1, 2016, Choibok Corp. issued 20,000 shares at $4 per share.
Required
a) Record the share reacquisition journal entry on July 1, 2016.
Date
Account Title and Explanation
Debit
Credit
