Question
National Supplys shareholders equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 6 million shares at $1 par $ 6,000,000 Paid-in
National Supplys shareholders equity included the following accounts at December 31, 2020:
Shareholders' Equity | ||
Common stock, 6 million shares at $1 par | $ | 6,000,000 |
Paid-in capitalexcess of par | 36,000,000 | |
Retained earnings | 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 | Reacquired 180,000 shares at $9 per share. |
February 17, 2022 | Reacquired 180,000 shares at $6.50 per share. |
November 9, 2023 | Sold 110,000 shares at $8 per share (assume FIFO cost). |
2. Prepare the shareholders equity section of National Supplys 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.
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. (Enter your answers in whole dollars.) Retirement Treasury stock $ 6,000,000 36,000,000 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 $ 42,000,000Step by Step Solution
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