Question
Exercise 18-14 Treasury stock; weighted-average and FIFO cost [LO18-5] At December 31, 2015, the balance sheet of Meca International included the following shareholders' equity accounts:
Exercise 18-14 Treasury stock; weighted-average and FIFO cost [LO18-5]
At December 31, 2015, the balance sheet of Meca International included the following shareholders' equity accounts: |
Shareholders Equity | ($ in millions) | ||
Common stock, 95 million shares at $1 par | $ | 95 | |
Paid-in capitalexcess of par | 370 | ||
Retained earnings | 480 | ||
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, 2016, Meca reacquired 2 million common shares at $18 per share. |
2. | On June 9, 2017, Meca reacquired 3 million common shares at $13 per share. |
3. | On May 25, 2018, Meca sold 3 million treasury shares at $20 per sharedetermine 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. |
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