At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts:...

Transcribed Image Text:

At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts: ($ in millions) $ 90 Shareholders' Equity Common stock, 90 million shares at $1 par Paid-in capital-excess of par Retained earnings 360 470 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On February 12, 2021, Meca reacquired 1 million common shares at $17 per share. 2. On June 9, 2022, Meca reacquired 2 million common shares at $14 per share. 3. On May 25, 2023, Meca sold 2 million treasury shares at $19 per share. Determine cost as the weighted-average cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method. View transaction list X: 1 Record the reacquisition of 1 million common shares at $17 per share. Record the reacquisition of 2 million common shares at $14 per share. 2 Record the sale of 2 million treasury shares at $19 per share-determine cost as the weighted average cost of treasury shares. Credit Record the sale of 2 million treasury shares at $19 per share-determine cost of treasury shares by the FIFO 4 method. At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts: ($ in millions) $ 90 Shareholders' Equity Common stock, 90 million shares at $1 par Paid-in capital-excess of par Retained earnings 360 470 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On February 12, 2021, Meca reacquired 1 million common shares at $17 per share. 2. On June 9, 2022, Meca reacquired 2 million common shares at $14 per share. 3. On May 25, 2023, Meca sold 2 million treasury shares at $19 per share. Determine cost as the weighted-average cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method. View transaction list X: 1 Record the reacquisition of 1 million common shares at $17 per share. Record the reacquisition of 2 million common shares at $14 per share. 2 Record the sale of 2 million treasury shares at $19 per share-determine cost as the weighted average cost of treasury shares. Credit Record the sale of 2 million treasury shares at $19 per share-determine cost of treasury shares by the FIFO 4 method.

Answer rating: 100% (QA)

1 Journalize the Shares reaquired as Treasury Stock on February 12 2021 Date Account Titles and Expl... View the full answer