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 1 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 20212023 was distributed to shareholders as cash dividends. Complete this question by entering your answers in the tabs below. Req 1 Treasury Req 1 Retired Stock Req 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).) No Date General Journal Debit Credit February 05, 2021 Common stock Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Cash B July 09, 2021 Cash Common stock Paid-in capital - excess of par C November 14, 202 Cash 18,000,000 Common stock 2,000,000 X 16,000,000 Paid-in capital - excess of par Req 1 Treasury Req 1 Retired Stock Req 2 Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares are viewed as treasury stock. (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).) No Date General Journal Debit Credit A February 05, 2021 Treasury stock Cash B July 09, 2021 Cash Treasury stock Paid-in capital - excess of par C November 14, 202 Cash Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Treasury stock Complete this question by entering your answers in the tabs below. Req 1 Retired Req 1 Treasury Stock Reg 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. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Shareholder's Equity ($ in millions) Treasury Retirement stock Paid-in capital: Common stock Paid-in capital - excess of par Retained earnings Less: Treasury stock Total shareholders' equity $ 0 0