Shareholders’ Equity ($ in millions) Common stock, 70 million shares at $1 par $ 70 Paid-in capital—excess of par 420 Retained earnings 530 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactio
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At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts:
| Shareholders’ Equity | ($ in millions) | ||
| Common stock, 70 million shares at $1 par | $ | 70 | |
| Paid-in capital—excess of par | 420 | ||
| 530 | |||
Required:
Assuming that Meca International views its share buybacks as
- On February 12, 2021, Meca reacquired 1 million common shares at $12 per share.
- On June 9, 2022, Meca reacquired 2 million common shares at $9 per share.
- On May 25, 2023, Meca sold 2 million treasury shares at $15 per share. Determine cost as the weighted-average cost of treasury shares.
- For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method.
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