60.1K

Verified Solution

Link Copied!

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

$($$ in millions$)$

$$200$

$1,600$

$1,000$

Required:

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.

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.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

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 $10).$

Answer & Explanation Solved by verified expert

See Answer