Performance My cours ignment results: more, April 72 Fall 2017 Section 2) ment:
ID: 2522442 • Letter: P
Question
Performance My cours ignment results: more, April 72 Fall 2017 Section 2) ment: Ch 18 Excel Attempt 1 (of 1) 13.15/15 Points 87.67% Award: 13.15 out of 15.00 points Show my answer National Supply's shareholders' equity included the following accounts at December 31, 201 Shareholders' Equity Common stock, 7 million shares at $1 par Paid-in capital-excess of par (Smillions) 7.000,000, 000, 0 35.00000o0,D Retained eamings 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) February 15, 2016 February 17, 2017 Reacquired 360,000 shares at $8 per share. Reacquired 360,000 shares at $5.50 per share.30,oo es.sD November 9, 2018 Sold 245,00 hres at s7 per share (assume Firo cosel. h0o, DoD ?00,000 @ $ 8 General Journal Debit No Date February 15, Common stock 360,000 2016 1,800,000 Paid-in capital excess of par Retained eanings 720,000 CashExplanation / Answer
Par value of common stock = $1 per share
Paid-in Capital in Excess of Par = $24,000,000/4,000,000 shares = $6 per share
(a) Prepare the following journal entries to record the given transactions assuming the shares were retired:
(b) Prepare the following journal entries to record the given transactions assuming the shares were accounted for as treasury stock:
Date Account Titles and Explanation Debit Credit Feb. 15, 2016 Common Stock (300,000 x $1) 300000 Paid-in Capital in Excess of Par (300,000 x $6) 1800000 Retained eanrings [300,000 x ($9 - $1 - $6)] 600000 Cash (300,000 x $9) 2700000 Feb. 17, 2017 Common Stock (300,000 x $1) 300000 Paid-in Capital in Excess of Par (300,000 x $6) 1800000 Paid-in Capital - Share Repurchase [300,000 x ($1 + $6 - $6.50) 150000 Cash (300,000 x $6.5) 1950000 Nov. 9, 2018 Cash (200,000 x $8) 1600000 Common Stock (200,000 x $1) 200000 Paid-in Capital in Excess of Par [200,000 x ($8 - $1)] 1400000