During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 250 shares of the company's own common stock at $21 cash per share. b. Jul. 15 Sold 120 of the shares purchased on February 1 for $22 cash per share. c. Sept. 1 Sold 90 of the shares purchased on February 1 for $20 cash per share.

Question

Business

Harper Wilkinson

10 May, 10:30

During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 250 shares of the company's own common stock at $21 cash per share. b. Jul. 15 Sold 120 of the shares purchased on February 1 for $22 cash per share. c. Sept. 1 Sold 90 of the shares purchased on February 1 for $20 cash per share.

+5

Answers (1)

Know the Answer?

Wade Kelley · Answer 1

equity at end = (810)

Explanation:

Feb-1-Entry of repurchase shares:

Dr Share capital (250 * 210) 5250

Cr cash 5250.

July-15-Entry of shares sold:

Dr Cash (120 * 22) 2640

Cr Share capital 2640

Sept-1 Entry of shares sold:

Dr Cash (90*20) 1800

Cr Share capital 1800.

Changes in equity:

= (5250) + 2640+1800 = (810) at end