National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 6 million shares at $1 par Paid-in capital-excess of par Retained earnings $ 6,000,000 36,000,000 76,000,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February 17, 2022 November 9, 2023 Reacquired 180,000 shares at $9 per share. Reacquired 180,000 shares at $6.50 per share. Sold 110,000 shares at $8 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2021, $15 million in 2022, and $16 million in 2023. No dividends were paid during the three-year period. Complete this question by entering your answers in the tabs below. Reg 1 Retired Reg 1 Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required fo transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the purchase of shares on February 15, 2021 for retirement. Note: Enter debits before credits. Date General Journal Debit Credit February 15, 2021 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Req 1 Retired Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required fo transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the sale of shares on November 9, 2023. Note: Enter debits before credits. Date General Journal Debit Credit November 09, 2023 Record entry Clear entry View general journal Req 1 Retired Req 1 Treasury Stock Reg 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock. (If no entry is rec for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of 180,000 shares at $9 per share on February 15, 2021 that are accounted for as treasury stock. Note: Enter debits before credits. Date General Journal Debit Credit February 15, 2021 Record entry Clear entry View general journal Req 1 Retired Req 1 Treasury Stock Reg 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock. (If no entry is rec for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of 180,000 shares at $6.50 per share on February 17, 2022 that are accounted for as treasury stock. Note: Enter debits before credits. Date General Journal Debit Credit February 17, 2022 Record entry Clear entry View general journal Reg 1 Retired Reg 1 Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock. (If no entry is rec for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
