National Supplys shareholders equity included the following accounts at December 31, 2023:

Shareholders' Equity
Common stock, 5 million shares at $1 par	$ 5,000,000
Paid-in capitalexcess of par	30,000,000
Retained earnings	98,500,000

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.

February 15, 2024	Reacquired 480,000 shares at $9 per share.
February 17, 2025	Reacquired 480,000 shares at $6.50 per share.
November 9, 2026	Sold 335,000 shares at $8 per share (assume FIFO cost).

1. Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2024, $22 million in 2025, and $24 million in 2026. No dividends were paid during the three-year period.

Complete this question by entering your answers in the tabs below.

• Req 1 Retired
• Req 1 Treasury Stock
• Req 2

Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.

Journal entry worksheet

• Record the purchase of 480,000 shares at $9 per share on February 15, 2024 for retirement.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 15, 2024	Common stock
	Cash

• Record the purchase of 480,000 shares at $6.50 per share on February 17, 2025 for retirement.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 17, 2025

• Record the sale of 335,000 shares at $8 per share (assume FIFO cost) on November 9, 2026.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
November 09, 2026	Cash	2,680,000
	Common stock

• Req 1 Retired
• Req 1 Treasury Stock
• Req 2

Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.

Journal entry worksheet

• Record the purchase of 480,000 shares at $9 per share on February 15, 2024 that are accounted for as treasury stock.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 15, 2024

• Req 1 Retired
• Req 1 Treasury Stock
• Req 2

Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.

Journal entry worksheet

• Record the purchase of 480,000 shares at $6.50 per share on February 17, 2025 that are accounted for as treasury stock.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 17, 2025

• Record the sale of 335,000 shares at $8 per share (assume FIFO cost) on November 9, 2026.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
November 09, 2026

Complete this question by entering your answers in the tabs below.

• Req 1 Retired
• Req 1 Treasury Stock
• Req 2

Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2024, $22 million in 2025, and $24 million in 2026. No dividends were paid during the three-year period.

Note: Enter your answers in whole dollars and not in millions.

Show less

Shareholders Equity	Retirement	Treasury stock
Paid-in capital:
Total shareholders equity	$0	$0

• Req 1 Treasury