Problem 18-2 (Algo) Share buyback-comparison of retirement and treasury stock treatment; financial statement effects [LO18-5] The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 320 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 320 1,920 1 2,200 1. During 2024, 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, 2024, TNL Systems purchased 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 20242026 was distributed to shareholders as cash dividends. Journal entry worksheet A B C Record the purchase of 6 million shares at $10 per share assuming the shares are retired. Note: Enter debits before credits. Date February 05, 2024 General Journal Debit Credit Clear endraz View general journal Journal entry worksheet < A B C Record the sale of 2 million shares at $12 per share. Note: Enter debits before credits. Date July 09, 2024 General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < A B 0 Record the sale of 2 million shares at $7 per share. Note: Enter debits before credits. Date November 14, 2026 General Journal Debit Credit View general journal Record entry Clear entry View transaction list Journal entry worksheet A B C Record the purchase of 6 million shares at $10 per share assuming the shares are viewed as treasury stock. Note: Enter debits before credits. Date February 05, 2024 General Journal Debit Credit Record entry. Clear entry. View general iournal Journal entry worksheet < A B C Record the sale of 2 million shares at $12 per share. Note: Enter debits before credits. Date July 09, 2024 General Journal Debit Credit View general journal Clear entry Record entry > Journal entry worksheet < A B C Record the sale of 2 million shares at $7 per share. Note: Enter debits before credits. Date November 14, 2026 General Journal Debit Credit View general journal Record entry Clear entry Req 1 Retired Req 1 Treasury Req 2 Stock Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Shareholder's Equity ($ in millions) Paid-in capital: Retirement Treasury stock Total shareholders' equity $ 0 $ 0 < Req 1 Treasury Stock Req 2 >