Reference no: EM132652804

Problem - Indigo Company had the following Shareholders' Equity accounts as of May 1, 2020:

Share capital:

Preferred shares, 60,000 issued and outstanding $738,000

Class A common shares, 150,000 issued and outstanding 750,000

Class B common shares, 440,000 issued and outstanding 2,530,000

Retained earnings 3,285,000

Total shareholders' equity $7,303,000

On June 10, Indigo reacquired and cancelled 1,800 Class A common shares at a cost of $4.15 per share. On August 26, 2020, Indigo issued 3,600 Class A common shares for $8.55 each. On September 30, the company reacquired and cancelled another 1,800 Class A common shares at $8.55 per share.

Required - Prepare the journal entries required to record these transactions.