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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).)

  1. On February 12, 2021, Meca reacquired 1 million common shares at $13 per share.
  2. On June 9, 2022, Meca reacquired 2 million common shares at $10 per share.
  3. On May 25, 2023, 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.

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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