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National Supply's shareholders' equity included th...

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National Supply's shareholders' equity included the following accounts at December 31, 2010: Shareholders' Equity Common stock, 6 million shares at $1 par $ 6,000,000 Paid-in capital?excess of par 30,000,000 Retained earnings 86,500,000 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. (Enter your answers in dollars not in millions. Omit the "$" sign in your response.) February 15, 2011 Reacquired 300,000 shares at $8 per share. February 17, 2012 Reacquired 300,000 shares at $5.50 per share. November 9, 2013 Sold 200,000 shares at $7 per share (assume FIFO cost). General Journal Debit Credit Feb. 15, 2011 Retired Accounted for as treasury stock Feb. 17, 2012 Retired Accounted for as treasury stock Nov. 9, 2013 Retired Accounted for as treasury stock (2) Prepare the shareholders? equity section of National Supply?s balance sheet at December 31, 2013, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2011, $15 million in 2012, and $16 million in 2013. No dividends were paid during the three-year period. (Enter your answers in dollars not in millions. Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Shareholders? Equity SHARES RETIRED TREASURY STOCK Paid-in capital: Common stock $ $ Paid-in capital ? excess of par Paid-in capital ? share repurchase Retained earnings Less: Treasury stock Total shareholders? equity $ $

 

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