Brand Storage Company's articles of incorporation authorized the issuance of 520 million common shares. The transactions described below effected changes in Brand's outstanding shares. Prior to the transactions, Brand's shareholders' equity included the following:
Shareholders' Equity $ in millions
Common stock, 400 million shares at $1 par, $400
Paid-in capital – excess of par 1,200
Retained earnings 84
Required:
Assuming that Brand retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions:
a. On January 8, 2009, Brand reacquired 8 million shares at $6.00 per share.
b. On August 24, 2009, Brand reacquired 16 million shares at $3.50 per share.
c. On July 26, 2010, Brand sold 12 million common shares at $7.00 per share.