Reference no: EM132612551

At the end of 2019, Durham Mining Corp. reported the following in Shareholders' Equity as indicated in Table-1 below:

Table-1:

Common shares, no-par value, authorized, unlimited shares, issued 2,000,000 shares.

Outstanding 1,900,000 shares $ 3,200,000

Contributed Capital on Treasury Stock Transactions 50,000

Retained Earnings 4,000,000

Treasury Stock, 100,000 common shares (700,000)

The company had treasury stock transactions in the following sequence during 2020:

i) Purchased 50,000 common shares as treasury stock at $10 per share.

ii) Reissued 20,000 treasury shares at $11 per share.

iii) Reissued 25,000 treasury shares at $5 per share.

Required:

Question a) Prepare journal entries for the treasury stock transactions

Question b) Calculate the balances in each equity account after the effects of the transactions in requirement (a). (ie: update the Table-1 information)