Boss Corporation reported the following equity section on its current balance sheet: $$\begin{array} { | l | r | }
\hline \text { Common shares, } 140,000 \text { shares authorized, } & \
\hline 0,000 \text { shares issued } & \$ 250,000 \
\hline \text { Contributed surplus - share repurchase } & 20,000 \
\hline \text { Retained earnings } & \underline { 107,000 } \
\hline \text { Total shareholders' equity } & \$ 377,000 \
\hline
\end{array}$$ Which of the following would be included in the entry to record the corporation's purchase of 1,000 common shares for $7.50 per share?

Question

Boss Corporation reported the following equity section on its current balance sheet: $$\begin{array} { | l | r | } 
\hline \text { Common shares, } 140,000 \text { shares authorized, } & \
\hline 0,000 \text { shares issued } & \$ 250,000 \
\hline \text { Contributed surplus - share repurchase } & 20,000 \
\hline \text { Retained earnings } & \underline { 107,000 } \
\hline \text { Total shareholders' equity } & \$ 377,000 \
\hline
\end{array}$$ Which of the following would be included in the entry to record the corporation's purchase of 1,000 common shares for $7.50 per share?

Quizplus · Accepted Answer

The purchase of shares at a price higher than their issue price involves debiting the contributed surplus account for the excess amount paid over the original issue price.

Boss Corporation Reported the Following Equity Section on Its Current