Elville Inc. was incorporated under provincial legislation with a December 31 year-end. The company has a single class of shares. As at December 31, 2019, it had 900,000 shares issued and outstanding. These shares had a book value of $18,000,000 on the balance sheet.
During 2020, Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share. The company held these in treasury and later found a buyer for half of these shares at $30. The other half were sold at $21 to another investor.
Required:
Record the share transactions using the single-transaction method for treasury stock, which is the preferred accounting method.

Question

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The Answer of Elville Inc. was incorporated under provincial legislation with a December 31 year-end. The company has a single class of shares. As at December 31, 2019, it had 900,000 shares issued and outstanding. These shares had a book value of $18,000,000 on the balance sheet.
During 2020, Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share. The company held these in treasury and later found a buyer for half of these shares at $30. The other half were sold at $21 to another investor.
Required:
Record the share transactions using the single-transaction method for treasury stock, which is the preferred accounting method.