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: 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 480,000 shares at $9 per share. February 17, 2025 Reacquired 480,000 shares at $6.50 per share. November 9, 2026 Sold 335,eee shares at $8 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 $20 million in 2024, $22 million in 2025, and $24 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 Treasury Stock Req 1 Retired 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 list 1 Journal entry worksheet 23 Note: Enter debits before credits. $ 5,000,000 30,000,000 98,500,000 Req 2 Record the purchase of 480,000 shares at $9 per share on February 15, 2024 for retirement. Date February 15, 2024 Record entry General Journal Clear entry < Req 1 Retired Debit Credit View general Journal 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: 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 480,000 shares at $9 per share. February 17, 2025 Reacquired 480,000 shares at $6.50 per share. November 9, 2026 Sold 335,eee shares at $8 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 $20 million in 2024, $22 million in 2025, and $24 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 Treasury Stock Req 1 Retired 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 list 1 Journal entry worksheet 23 Note: Enter debits before credits. $ 5,000,000 30,000,000 98,500,000 Req 2 Record the purchase of 480,000 shares at $9 per share on February 15, 2024 for retirement. Date February 15, 2024 Record entry General Journal Clear entry < Req 1 Retired Debit Credit View general Journal Req 1 Treasury Stock >
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, 2023:
Shareholders Equity
Common stock, 5 million shares at $1 part
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, 2024 Reacquired 480,000 shares at $9 per share.
February 17, 2825 Reacquired 480,000 shares at $6.50 per share.
November 9, 2826 Sold 335,000 shares at $8 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 $20 million in 2024, $22 million in 2025, and $24 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
View transaction llest
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.
Journal entry worksheet
< 1 23
Req 2
Note: Enter debits before credits.
$ 5,000,000
30,000,000
98,500,000
Record the purchase of 480,000 shares at $9 per share on February 15, 2024
for retirement.
Date
February 15, 2024
Record entry
General Journal
Clear entry
Req 1 Retired
Debit
Credit
View general Journal
Req 1 Treasury Stock >
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