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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.

Answer :

Answer:

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

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