At December 31, 2023, the balance sheet of Meca International included the following shareholders’ equity accounts:

Required:
Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry
for each of the following transactions:
1. On February 12, 2024, Meca reacquired 1 million common shares at $13 per share.
2. On June 9, 2025, Meca reacquired 2 million common shares at $10 per share.
3. On May 25, 2026, Meca sold 2 million treasury shares at $15 per share. Determine cost as the weightedaverage
cost of treasury shares.
4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method.

Transcribed Image Text:

Shareholders' Equity Common stock, 60 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in millions) $ 60 300 410