At December $31,2023,$ the balance sheet of Meca

International included the following

shareholders$$ equity accounts:

Shareholders$$

Equity

$($$ in millions$)$

Common stock,

$60$ million

shares at $$1$

par

$ $60$

Paid$-$in

capital$$

excess of par

$300$

Retained

earnings

$410$

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.

page $1086$

$3.$ On May $25,2026,$ Meca sold $2$ million treasury

shares at $$15$ per share. Determine cost as the

weighted$-$average cost of treasury shares.

$4.$ For the previous transaction, assume Meca

determines the cost of treasury shares by the

FIFO method.At December $31,2023,$ the balance sheet of Meca

International included the following

shareholders$$ equity accounts:

Shareholders$$

Equity

$($$ in millions$)$

Common stock,

$60$ million

shares at $$1$

par

$ $60$

Paid$-$in

capital$$

excess of par

$300$

Retained

earnings

$410$

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.

page $1086$

$3.$ On May $25,2026,$ Meca sold $2$ million treasury

shares at $$15$ per share. Determine cost as the

weighted$-$average cost of treasury shares.

$4.$ For the previous transaction, assume Meca

determines the cost of treasury shares by the

FIFO method.