Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The shareholders' equity section of the balance sheet of TNL. Systems inci included the followng accounts at December 31 , 2020 . Required: 1. During

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The shareholders' equity section of the balance sheet of TNL. Systems inci included the followng accounts at December 31 , 2020 . Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate tronsactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (0) retired and (o) viewed as treasury stock. a. On February 5, 2021, TNL Systems purchased 6 milion shares at $10 per share. b. On July 9, 2021, the corporation sold 2 million shares at $12 per share. c. On November 14. 2023 , the corporation sold 2 million shares at $7 pet shafe 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comgaring the two approaches, Assume all net income earned in 2021-2023 was distributed to shereholders as cash dividends: Complete this question by entering your answers in the tabs below. Prepare the entries for both the purchase and subsequent resaie for the above transactions of the stures assuming the shares are retired. If no entry is recuired for a transactionvevent, select "No fournal entry requared" in the fiast sccourt fieid. Eater vour answers i Prepare the entries for both the purchase and subsequent resale for the ahove transactions of the shares assuming thit shares are retired. fif no entry is required for a transaction/deverv, select "No jotallal entry required" in the first account field Enter your answer militions (i.e. 10,000,000 stiduld be entered as 10)i) Journal entry worksheet Record the purchase of 6 million shares at $10 per share assuming the shares are retired. Notel tinter deblits before credits. 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 joumal entry required" in the first account fieid. Enter your answers millions (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet Record the sale of 2 million shares at $12 per share. Note: Enter debits before credits, 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 fiels. Enter your answern millions (i,e, , 10,000,000-should be entered as 10).) Journal entry worksheet Record the sale of 2 million shares at $7 per share. Note: Enter debits before creadits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Working Papers Chapters 1 14 For Warren Jones Tayler S Financial And Managerial Accounting

Authors: Carl S. Warren ,Jefferson P. Jones ,William Tayler

16th Edition

0357714113, 978-0357714119

More Books

Students also viewed these Accounting questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago