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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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