National Supply's shareholders' equity included the following accounts at December 31, 2015:($ in millions)Shareholders' Equity$ 6,000,000Common stock, 6 million shares at $1 parPaid-in capital-excess of parRetained earnings30,000,00086,500,000Required:1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Pre-pare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retiredand (b) accounted for as treasury stock.February 15, 2016February 17, 2017November 9, 2018Reacquired 300,000 shares at $8 per share.Reacquired 300,000 shares at $5.50 per share.Sold 200,000 shares at $7 per share (assume FIFO cost).2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2018, assumingthe shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2016, $15million in 2017, and $16 million in 2018. No dividends were paid during the three-year period.

Compute the average paid in capital in excess of par:

Answered: National Supply's shareholders' equity…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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On January 1, 2018, Vermont Maple Corp. had 2,650,000 shares of commons stock issued and outstanding. During 2018, it had the following transactions that affected the common stock account:
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JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) P400,000 Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000 Share premium – Ordinary shares 192,000Accumulated profits 1,200,000 The following transactions occurred during 2016: At the beginning of 2016, the company…

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