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Question a: On May 30, 2020, Rose Hill Corporation accepted subscriptions for 10,000 common shares. On that date, the shares were selling for $30 each. Subscribers paid 40% down and must pay the remainder in six months. On September 30, 2020, the balance of the subscription price was received, and the shares were issued.
Instructions
Give all journal entries related to the share subscriptions
Question b: Sahali Corp. issued 1,000,000 common shares at $13 a share during April 2014. On September 23, 2020, Sahali repurchased 50,000 shares for $17 a share.
Sahali is incorporated under the CBCA and therefore retired these shares.
Prepare the journal entry to record the repurchase of the shares.
Financial Statement Analysis and Preparation
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