Problem 18-2 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, 2017: Shareholders' Equity(S in millions) S 380 3,040 Common stock, 380 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings 2,800 Required: 1. During 2018, 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, 2018, TNL Systems purchased 6 million shares at $11 per share. b. On July 9, 2018, the corporation sold 2 million shares at $13 per share. c. On November 14, 2020, the corporation sold 2 million shares at $8 per share. 2. Prepare the shareholders equity section of TNL Systems' balance sheet at December 31, 2020, comparing the two approaches. Assume all net income earned in 2018-2020 was distributed to shareholders as cash dividends. No Dste General Journal Deb Credit February 05, 2018 Treasury stock Cash 66 2 July 09, 2018 Cash 26 Paid-in capital-share repurchase Treasury stock 4 3 November 14, 202 Cash 16 Paid-in capital-share repurchase Retained earnings Treasury stock