National Supply's shareholders' equity included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 5 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: $ 5,000,000 25,000,000 74,500,000 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, 2024 Reacquired 160,000 shares at $8 per share. February 17, 2025 Reacquired 160,000 shares at $5.50 per share. November 9, 2026 Sold 95,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $13 million in 2024, $14 million in 2025, and $15 million in 2026. No dividends were paid during the three-year period. Complete this question by entering your answers in the tabs below. Req 1 Retired Req 1 Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. View transaction let Journal entry worksheet 1 23 Record the purchase of 160,000 shares at $8 per share on February 15, 2024 for retirement. Note: Enter debits before credits. Date February 15, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Req 1 Retired Req 1 Treasury Stock >
National Supply's shareholders' equity included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 5 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: $ 5,000,000 25,000,000 74,500,000 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, 2024 Reacquired 160,000 shares at $8 per share. February 17, 2025 Reacquired 160,000 shares at $5.50 per share. November 9, 2026 Sold 95,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $13 million in 2024, $14 million in 2025, and $15 million in 2026. No dividends were paid during the three-year period. Complete this question by entering your answers in the tabs below. Req 1 Retired Req 1 Treasury Stock Req 2 Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. View transaction let Journal entry worksheet 1 23 Record the purchase of 160,000 shares at $8 per share on February 15, 2024 for retirement. Note: Enter debits before credits. Date February 15, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Req 1 Retired Req 1 Treasury Stock >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:National Supply's shareholders' equity included the following accounts at December 31, 2023:
Shareholders' Equity
Common stock, 5 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
Required:
$ 5,000,000
25,000,000
74,500,000
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, 2024 Reacquired 160,000 shares at $8 per share.
February 17, 2025 Reacquired 160,000 shares at $5.50 per share.
November 9, 2026 Sold 95,000 shares at $7 per share (assume FIFO cost).
2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a)
retired and (b) accounted for as treasury stock. Net income was $13 million in 2024, $14 million in 2025, and $15 million in 2026.
No dividends were paid during the three-year period.
Complete this question by entering your answers in the tabs below.
Req 1 Retired
Req 1 Treasury
Stock
Req 2
Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
whole dollars and not in millions.
View transaction let
Journal entry worksheet
1
23
Record the purchase of 160,000 shares at $8 per share on February 15, 2024
for retirement.
Note: Enter debits before credits.
Date
February 15, 2024
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
< Req 1 Retired
Req 1 Treasury Stock >
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