National Supplys shareholders equity included the following accounts at December 31, 2017 Shareholders' Equity ($ in millions) Common stock, 4 million shares at $1 par $ 4,000,000 Paid in capitalexcess of par 16,000,000 Retained earnings 73,000,000 Required 1a 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, 2018 Reacquired 140,000 shares at $7 per share February 17, 2019 Reacquired 140,000 shares at $4 50 per share November 9, 2020 Sold 80,000 shares at $6 per share (assume FIFO cost) 1b Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2020, assuming the shares are (a) retired and (b) accounted for as treasury stock Net income was $12 million in 2018, $13 million in 2019, and $14 million in 2020 No dividends were paid during the three year period

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National Supplys shareholders equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 4 million shares at $1 par

National Supplys shareholders equity included the following accounts at December 31, 2017:

Shareholders' Equity	($ in millions)
Common stock, 4 million shares at $1 par	$	4,000,000
Paid-in capitalexcess of par		16,000,000
Retained earnings		73,000,000

Required: 1a. 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, 2018	Reacquired 140,000 shares at $7 per share.
February 17, 2019	Reacquired 140,000 shares at $4.50 per share.
November 9, 2020	Sold 80,000 shares at $6 per share (assume FIFO cost).

1b. Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2020, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $12 million in 2018, $13 million in 2019, and $14 million in 2020. No dividends were paid during the three-year period.