National Supplys shareholders equity included the following accounts at December 31, 2023: Shareholders'...
60.1K
Verified Solution
Link Copied!
Question
Accounting
National Supplys shareholders equity included the following accounts at December 31, 2023:
Shareholders' Equity
Common stock, 2 million shares at $1 par
$ 2,000,000
Paid-in capitalexcess of par
8,000,000
Retained earnings
70,000,000
Required:
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 100,000 shares at $7 per share.
February 17, 2025
Reacquired 100,000 shares at $4.50 per share.
November 9, 2026
Sold 50,000 shares at $6 per share (assume FIFO cost).
Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $10 million in 2024, $11 million in 2025, and $12 million in 2026. No dividends were paid during the three-year period.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
