Retained earnings 76,000,000 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 180,000 shares at $9 per share. February 17, 2025 Reacquired 180,000 shares at $ 6.50 per share. November 9, 2026 Sold 110, 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 $14 million in 2024, $15 million in 2025, and $16 million in 2026. No dividends were paid during the three-year period.
Retained earnings 76,000,000 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 180,000 shares at $9 per share. February 17, 2025 Reacquired 180,000 shares at $ 6.50 per share. November 9, 2026 Sold 110, 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 $14 million in 2024, $15 million in 2025, and $16 million in 2026. No dividends were paid during the three-year period.
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, 6 million shares at $1 par $ 6,000,000 Paid - in capital-excess of par 36,000,000
Retained earnings 76,000,000 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 180,000 shares at $9 per share. February 17, 2025 Reacquired 180,000 shares at $
6.50 per share. November 9, 2026 Sold 110,000 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 $14 million in 2024, $15 million in
2025, and $16 million in 2026. No dividends were paid during the three-year period.
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