The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December $31,$

$2023$:

Shareholders' Equity

Common stock, $270$ million shares at $$1$ par

Paid$-$in capital$-$excess of par

Paid$-$in capital$-$share repurchase

Retained earnings

$($$ in millions$)$

$$270$

$1,890$

$2$

$1,700$

Required:

During $2024,$ 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 $5,2024,$ TNL Systems purchased $7$ million shares at $$11$ per share.

b$.$ On July $9,2024,$ the corporation sold $3$ million shares at $$13$ per share.

c$.$ On November $14,2026,$ the corporation sold $3$ million shares at $$8$ per share.

Prepare the shareholders' equity section of TNL Systems' balance sheet at December $31,2026,$ comparing the two approaches.

Assume all net income earned in $2024-2026$ was distributed to shareholders as cash dividends.

Complete this question by entering your answers in the tabs below.

Req $1$ Retired

Req $2$

Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares are

retired.

Note: 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 $10).$

Journal entry worksheet

Record the purchase of $7$ million shares at $$11$ per share assuming the shares

are retired.