Help Save & Ex The shareholders\' equity section of the balance sheet of TNIL. S
ID: 2509983 • Letter: H
Question
Help Save & Ex The shareholders' equity section of the balance sheet of TNIL. Systems Inc. included the following accounts at December 31, 2017: S in Shareholders' Equity Common stock, 400 $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings millions $ 400 3,200 3,000 million shares at Required 1. During 2018, 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, 2018, TNL Systems purchased 8 million shares at $12 per share b. On July 9, 2018, the corporation sold 2 million shares at $14 per share C. On November 14, 2020, the corporation sold 2 million shares at $9 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2020, comparing the two approaches. Assume all net income earned in 2018-2020 was distributed to shareholders as cash dividends. Complete this question by entering your answers in the tabs below. Prev 13 of 15! Next> rchExplanation / Answer
1A) Journal Entries assuming that shares are retired (Amounts in $)
1B) Journal Entries assuming that shares are viewed as treasury stock (Amounts in $)
2) Shareholder's Equity Section (Amounts in $)
Treasury stock at the end = 8 million purchased - 2 million sold on July 9 - 2 million sold on Nov 14
= 4 million
Date General Journal Debit Credit Feb 5, 2018 Common Stock (8 million*$1 par) 8,000,000 Paid-in-capital-share repurchase 1,000,0000 Paid-in-capital-excess of par ($96-$8-$1) million 87,000,000 Cash (8 million*$12 per share) 96,000,000 (To record the purchase of shares) July 9, 2018 Cash (2 million*$14 per share) 28,000,000 Common Stock (2 million*$1 par) 2,000,000 Paid-in capital-excess of par ($28 - $2) million 26,000,000 (To record the sale of 2 million shares) Nov 14, 2020 Cash (2 million*$9 per share) 18,000,000 Common Stock (2 million*$1 par) 2,000,000 Paid-in capital-excess of par ($18 - $2) million 16,000,000 (To record the sale of 2 million shares at $9 per share)Related Questions
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