Problem 18-2 (Algo) Share buyback-comparison of retirement and treasury stock treatment [LO18-5] The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 310 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 310 2,790 2,100 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. b. On July 9, 2021, the corporation sold 2 million shares at $14 per share. c. On November 14, 2023, the corporation sold 2 million shares at $9 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to shareholders as cash dividends. Complete this question by entering your answers in the tabs below. Req Retired Req 1 Treasury Stock Reg 2 Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) A Record the purchase of 8 million shares at $12 per share assuming the shares are retired. E B Record the sale of 2 million shares at $14 per share. C Record the sale of 2 million shares at $9 per share. Note : = journal entry has been entered Req 1 Retired Req 1 Treasury Stock Reg 2 Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assu viewed as treasury stock. (If no entry is required for a transaction/event, select "No journal entry required" in Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list X > A Record the purchase of 8 million shares at $12 per share assuming the shares are viewed as treasury stock. e shares B Record the sale of 2 million shares at $14 per share. C Record the sale of 2 million shares at $9 per share. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Shareholder's Equity ($ in millions) Retirement Treasury stock Paid-in capital: Total shareholders' equity $ 0 $ 0