The shareholders equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:

Shareholders' Equity	($ in millions)
Common stock, 330 million shares at $1 par	$	330
Paid-in capitalexcess of par		2,310
Paid-in capitalshare repurchase		1
Retained earnings		2,300

Required:

1.

During 2016, 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. (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).)

a.

On February 5, 2016, TNL Systems purchased 8 million shares at $10 per share.

b.

On July 9, 2016, the corporation sold 2 million shares at $12 per share.

c.

On November 14, 2018, the corporation sold 2 million shares at $7 per share.

1.

Record the purchase of 8 million shares at $10 per share assuming the shares are retired.

2.

Record the sale of 2 million shares at $12 per share.

3.

Record the sale of 2 million shares at $7 per share.

1.

Record the purchase of 8 million shares at $10 per share assuming the shares are viewed as treasury stock.

2.

Record the sale of 2 million shares at $12 per share.

3.

Record the sale of 2 million shares at $7 per share.

2.

Prepare the shareholders equity section of TNL Systems balance sheet at December 31, 2018, comparing the two approaches. Assume all net income earned in 20162018 was distributed to shareholders as cash dividends. (All lines in the table should be filled. 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