National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 2 million shares at $1 par Paid-in capital-excess of par Retained earnings $ 2,000,000 16,000,000 82,000,000 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 Reacquired 260,000 shares at $11 per share. Reacquired 260,000 shares at $8.50 per share. Sold 170,000 shares at $10 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 $18 million in 2021, $19 million in 2022, and $20 million in 2023. No dividends were paid during the three-year period. Complete this question by entering your answers in the tabs below. Req 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 for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Debit Credit Date February 15, 2021 1 General Journal Common stock Paid-in capital - excess of par Retained earnings Cash February 17, 2022 Common stock Paid-in capital - excess of par Paid-in capital - share repurchase Cash 3 November 09, 2023 Cash Common stock Paid-in capital - excess of par Req 1 Reg 1 Retired 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 required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No General Journal Debit Credit Date February 15, 2021 Treasury stock Cash 2 February 17, 2022 Treasury stock Cash 3 November 09, 2023 Cash Retained earnings Treasury stock Req 1 Retired Req1 Treasury Stock Reg 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 $18 million in 2021, $19 million in 2022, and $20 million in 2023. No dividends were paid during the three-year period. (Enter your answers in whole dollars.) Retirement Treasury stock Shareholders' Equity Paid-in capital: Common stock Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Less: Treasury stock Total shareholders' equity $ 0 $ 0 Reg 1 Treasury Stock Req2 >
