The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 210 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 210 1,260 1 1,200 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 9 million shares at $10 per share. b. On July 9, 2021, the corporation sold 3 million shares at $12 per share. c. On November 14, 2023, the corporation sold 3 million shares at $7 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. ems A Saved Help Save & Exit Submit Check my work 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).) View transaction list Journal entry worksheet Record the purchase of 9 million shares at $10 per share assuming the shares are retired. Note: Enter debits before credits. Date General Journal Debit Credit February 05, 2021 Prey. 1 of 2 ! Next > View transaction list Journal entry worksheet Record the sale of 3 million shares at $12 per share. Note: Enter debits before credits. Date General Journal Debit Credit July 09, 2021 Journal entry worksheet Record the sale of 3 million shares at $12 per share. Note: Enter debits before credits. Date General Journal Debit Credit July 09, 2021 Journal entry worksheet Record the sale of 3 million shares at $7 per share. Note: Enter debits before credits. Date General Journal Debit Credit November 14, 2023 Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to shareholders as cash dividends. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Shareholder's Equity ($ in millions) Retirement Treasury stock Paid-in capital: Total shareholders' equity $ 0 $ 0
