The following excerpt is from an article reported in an online issue of Bloomberg. Ford Motor Co. (F) said it will repurchase $2.9 billion of its shares to reduce dilution from recent stock grants to executives. The par amount per share for Ford s common stock is $0.01. Paid-in capitalexcess of par is $6.49 per share on average. The market price was $21.5. Required: 1. Suppose Ford reacquires 123.00 million shares through repurchase on the open market at $21.50 per share. Prepare the appropriate journal entry to record the purchase. Ford considers the shares it buys back to be treasury stock. 2. Suppose Ford considers the shares it buys back to be retired rather than treated as treasury stock. Prepare the appropriate journal entry to record the purchase.

The following excerpt is from an article reported in an online issue of Bloomberg. Ford Motor Co. (F) said it will repurchase $2.9 billion of its shares to reduce dilution from recent stock grants to executives. The par amount per share for Ford 's common stock is $0.01. Paid-in capital-excess of par is $6.49 per share on average. The market price was $21.5. Required: 1. Suppose Ford reacquires 123.00 million shares through repurchase on the open market at $21.50 pe share. Prepare the appropriate journal entry to record the purchase. Ford considers the shares it buys back to be treasury stock. 2. Suppose Ford considers the shares it buys back to be retired rather than treated as treasury stock. Prepare the appropriate journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose Ford considers the shares it buys back to be retired rather than treated as treasury stock. Prepare to record the purchase. (If no entry is required for a transaction/event, select "No journal entry required" i your answers in millions and rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) View transaction list