Required: 1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2024, TNL Systems purchased 8 million shares at $12 per share. b. On July 9, 2024, the corporation sold 3 million shares at $14 per share. c. On November 14, 2026, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends.

Required: 1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2024, TNL Systems purchased 8 million shares at $12 per share. b. On July 9, 2024, the corporation sold 3 million shares at $14 per share. c. On November 14, 2026, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31,
2023:
Shareholders' Equity
Common stock, 200 million shares at $1 par
Paid-in capital-excess of par
Paid-in capital-share repurchase
Retained earnings
Required:
1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the
entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury
stock.
a. On February 5, 2024, TNL Systems purchased 8 million shares at $12 per share.
b. On July 9, 2024, the corporation sold 3 million shares at $14 per share.
c. On November 14, 2026, the corporation sold 3 million shares at $9 per share.
2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches.
Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends.
Req 1 Retired
Complete this question by entering your answers in the tabs below.
Req 1 Treasury
Stock
Shareholder's Equity
Paid-in capital:
Common stock
Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two
approaches. Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Paid-in capital - excess of par
Retained earnings
Less: Treasury stock
Total shareholders' equity
Req 2
X Answer is complete but not entirely correct.
$
Retirement
$
($ in millions)
($ in millions)
$ 200
1,600
2
1,000
218 X $
1,599
978
16 X
2,779
$
Treasury
stock
200
1,600
999
20 X
2,779

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