National Supplys shareholders equity included the following accounts at December 31, 2017 Shareholders' Equity ($ in 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 February 15, 2018 Reacquired 120,000 shares at $6 per share February 17, 2019 Reacquired 120,000 shares at $3 50 per share November 9, 2020 Sold 65,000 shares at $5 per share (assume FIFO cost) REQUIRED 1A Feb 15 Record the repurchase of shares on February 15, 2018 for retirement Feb 17 Record the repurchase of shares on February 17, 2019 for retirement Nov 9 Record the sale of shares on November 9, 2020 No Date General Journal Debit Credit 1 February 15, 2018 Common stock Paid in capitalexcess of par Retained earnings Cash 2 February 17, 2019 Common stock Paid in capitalexcess of par Paid in capitalshare repurchase Cash 3 November 09, 2020 Cash Common stock Paid in capitalexcess of par REQUIRED 1B Feb 15 Record the repurchase of shares on February 15, 2018 and accounted as treasury stock Feb 17 Record the repurchase of shares on February 17, 2019 and accounted as treasury stock Nov 09 Record resale of treasury shares on November 9, 2020 (assumes FIFO cost) No Date General Journal Debit Credit 1 February 15, 2018 Treasury stock Cash 2 February 17, 2019 Treasury stock Cash 3 November 09, 2020 Cash Retained earnings Treasury stock REQUIRED 2 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 $11 million in 2018, $12 million in 2019, and $13 million in 2020 No dividends were paid during the three year period (Enter your answers in whole dollars ) Shareholders Equity Retirement Treasury stock Paid in capital Common stock Paid in capitalexcess of par Paid in capitalshare repurchase Retained earnings Less Treasury stock Total shareholders equity $0 $0

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National Supplys shareholders equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 3 million shares at $1 par

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

Shareholders' Equity	($ in 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.


February 15, 2018	Reacquired 120,000 shares at $6 per share.
February 17, 2019	Reacquired 120,000 shares at $3.50 per share.
November 9, 2020	Sold 65,000 shares at $5 per share (assume FIFO cost).

REQUIRED 1A

Feb 15 Record the repurchase of shares on February 15, 2018 for retirement.

Feb 17 Record the repurchase of shares on February 17, 2019 for retirement.

Nov 9 Record the sale of shares on November 9, 2020.

No	Date	General Journal	Debit	Credit
1	February 15, 2018	Common stock
		Paid-in capitalexcess of par
		Retained earnings
		Cash

2	February 17, 2019	Common stock
		Paid-in capitalexcess of par
		Paid-in capitalshare repurchase
		Cash

3	November 09, 2020	Cash
		Common stock
		Paid-in capitalexcess of par

REQUIRED 1B

Feb 15 Record the repurchase of shares on February 15, 2018 and accounted as treasury stock.

Feb 17 Record the repurchase of shares on February 17, 2019 and accounted as treasury stock.

Nov 09 Record resale of treasury shares on November 9, 2020 (assumes FIFO cost).

No	Date	General Journal	Debit	Credit
1	February 15, 2018	Treasury stock
		Cash

2	February 17, 2019	Treasury stock
		Cash

3	November 09, 2020	Cash
		Retained earnings
		Treasury stock

REQUIRED 2

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 $11 million in 2018, $12 million in 2019, and $13 million in 2020. No dividends were paid during the three-year period. (Enter your answers in whole dollars.)

Shareholders Equity	Retirement	Treasury stock
Paid-in capital:
Common stock
Paid-in capitalexcess of par
Paid-in capitalshare repurchase
Retained earnings
Less: Treasury stock
Total shareholders equity	$0	$0