Reference no: EM132597976

Question - WhiteStar Logistics Company had the following equity section as of January 1, 2019:

Share capital - ordinary, $1 par,200,000 shares $ 200,000

Share premuim - ordinary $ 600,000

Retained Earnings $ 250,000

Total Equity $ 1,050,000

During 2019, the following transaction occurred

On 2 April, Whitestar Company has repurchased 14,000 treasury shares at a price of $10.

On 5 April, 4,000 shares of the above mentioned has been sold again "reissued" at a price of $ 9.

On 9 May, Another 2,000 shares of the above mentioned treasury shares was sold at price of $ 14.

On 20 Septermber, another 4,000 shares of the treasury shares was sold at price of $ 13.

Required -

(1) Prepare Journal entries to record the above mentioned transaction.

(2) Prepare the Equity section as of 31 December 2017.

(3) State some of the special characteristics of the Corporate form of an organization, with Harvard references.