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National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 4 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February 17, 2022 November 9, 2023 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2021, $21 million in 2022, and $22 million in 2023. No dividends were paid during the three-year period. Req 1 Retired $ 4,000,000 24,000,000 85,000,000 Reacquired 300,000 shares at $9 per share. Reacquired 300,000 shares at $6.50 per share. Sold 200,000 shares at $8 per share (assume FIFO cost). Complete this question by entering your answers in the tabs below. Req 1 Treasury Stock View transaction list Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 4 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February 17, 2022 November 9, 2023 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2021, $21 million in 2022, and $22 million in 2023. No dividends were paid during the three-year period. Req 1 Retired $ 4,000,000 24,000,000 85,000,000 Reacquired 300,000 shares at $9 per share. Reacquired 300,000 shares at $6.50 per share. Sold 200,000 shares at $8 per share (assume FIFO cost). Complete this question by entering your answers in the tabs below. Req 1 Treasury Stock View transaction list Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 4 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February 17, 2022 November 9, 2023 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2021, $21 million in 2022, and $22 million in 2023. No dividends were paid during the three-year period. Req 1 Retired Complete this question by entering your answers in the tabs below. $ 4,000,000 24,000,000 85,000,000 Reacquired 300,000 shares at $9 per share. Reacquired 300,000 shares at $6.50 per share. Sold 200,000 shares at $8 per share (assume FIFO cost). Req 1 Treasury Stock View transaction list Journal entry Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transcribed Image Text:National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 4 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February 17, 2022 November 9, 2023 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $20 million in 2021, $21 million in 2022, and $22 million in 2023. No dividends were paid during the three-year period. Req 1 Retired Complete this question by entering your answers in the tabs below. $ 4,000,000 24,000,000 85,000,000 Reacquired 300,000 shares at $9 per share. Reacquired 300,000 shares at $6.50 per share. Sold 200,000 shares at $8 per share (assume FIFO cost). Req 1 Treasury Stock View transaction list Journal entry Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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