Reference no: EM132987790

Question - At the beginning of 20X1, the accounting records of Friends Corp. reported the following:

Preferred shares, 7,800 shares outstanding, no-par $ 219,180

Common shares, 181,800 shares outstanding, no-par 492,678

Contributed capital on common share retirement 111,300

Retained earnings 556,500

During the year, the company acquired and retired shares, while other shares were issued:

15 March 25,600 common shares bought and retired at $6 per share 16 March 4,500 preferred shares bought and retired at $31.40 per share 20 May 9,800 common shares bought and retired at $1 per share 25 May 2,200 preferred shares bought and retired at $15.80 per share 30 May 11,400 common shares issued at $9.80 per share 15 Nov. 5,300 common shares bought and retired at $29 per share

Required -

1. Give journal entries to record each share retirement transaction.

2. Calculate the closing balance in each account in shareholders' equity.