CHAPTER 18 (3.)

The shareholders equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2017:

Shareholders' Equity	($ in millions)
Common stock, 340 million shares at $1 par	$	340
Paid-in capitalexcess of par		2,720
Paid-in capitalshare repurchase		1
Retained earnings		2,400

Required: 1. During 2018, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock.

a. On February 5, 2018, TNL Systems purchased 8 million shares at $12 per share.

b. On July 9, 2018, the corporation sold 2 million shares at $14 per share.

c. On November 14, 2020, the corporation sold 2 million shares at $9 per share.