Question
Do not copy and paste a similar question's answer from Chegg because that answer was wrong. At December 31, 2020, the balance sheet of Meca
Do not copy and paste a similar question's answer from Chegg because that answer was wrong.
At December 31, 2020, 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: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
- On February 12, 2021, Meca reacquired 1 million common shares at $13 per share.
- On June 9, 2022, Meca reacquired 2 million common shares at $10 per share.
- On May 25, 2023, Meca sold 2 million treasury shares at $15 per share. Determine cost as the weighted-average cost of treasury shares.
- For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method.
No | Date | General Journal | Debit | Credit |
---|---|---|---|---|
1 | February 12, 2021 | Treasury stock | ||
Cash | ||||
2 | June 09, 2022 | Treasury stock | ||
Cash | ||||
3 | May 25, 2023 | Cash | ||
Treasury stock | ||||
Paid-in capital - share repurchase | ||||
4 | May 25, 2023 | Cash | ||
Treasury stock | ||||
Paid-in capital - share repurchase |
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