Question
National Supply's shareholders' equity included the following accounts at December 31, 2012: Shareholders Equity ($millions) Common stock, 3 million shares at $1 par 3,000,000 Paid-in
National Supply's shareholders' equity included the following accounts at December 31, 2012:
Shareholders Equity ($millions) Common stock, 3 million shares at $1 par 3,000,000 Paid-in capitalexcess of par 9,000,000 Retained earnings 71,500,000 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. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) February 15, 2013 Reacquired 120,000 shares at $6 per share. February 17, 2014 Reacquired 120,000 shares at $3.50 per share. November 9, 2015 Sold 65,000 shares at $5 per share (assume FIFO cost). Journal Entry Worksheet 1- Record the repurchase of shares on February 15, 2013 for retirement. 2- Record the repurchase of shares on February 15, 2013 and accounted as treasury stock. 3- Record the repurchase of shares on February 17, 2014 for retirement. 4- Record the repurchase of shares on February 17, 2014 and accounted as treasury stock. 5- Record reissue of shares were formally retired on November 09, 2015. 6 - Record resale of treasury shares on November 9, 2015. 2 - Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2015, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $11 million in 2013, $12 million in 2014, and $13 million in 2015. No dividends were paid during the three-year period. (Enter your answers in whole dollars.) Shareholders' Equity Retirement Treasury stock Paid-in Capital:
Retained earnings:
Total shareholders' equity
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