Problem $18-2($Algo$)$ Share buyback$$comparison of retirement and treasury stock treatment; financial $15$

Req $1$ Retired

Req $1$ Treasury

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$5\mathrm{.}55$

points

Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares are viewed as treasury stock.

Note: 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 $10).$

Show less $A$

$\backslash$table$[[$No$,$Date,General Jour,,Debit,Credit$],[$A$,$February $05,2024,$Treasury stock,$(,96,000,000\backslash$times $,],[,$Cash,Q$,,96,000,000\backslash$times $],[$B$,$July $09,2024,$Cash,$\backslash$theta $,28,000,000\backslash$times $,],[,$Treasury stock,$0,,24,000,000\backslash$times $],[,$Paid$-$in capital $-$ share repurchase,$0,,4,000,000\backslash$times $],[$C$,$November $14,202,$Cash,Q$,18,000,000\backslash$times $,],[,$Treasury stock,ox$,,24,000,000\backslash$times $],[,$Paid$-$in capital $-$ share repurchase,$0,6,000,000\backslash$times $,]]15$

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$5\mathrm{.}55$

points

Req $1$ Treasury

Stock

Req $2$

Req $2$

Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares are retired.

Note: 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 $10).$

Show less $$

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit,$],[$A$,$February $05,2024,$Treasury stock,$\backslash$times $,96,000,000\backslash$times $,],[,,$Cash,$\backslash$times $,,96,000,000\backslash$times $],[,,,,,],[$B$,$July $09,2024,$Cash,$\backslash$times $28,000,000\backslash$times $,,],[,,$Paid$-$in capital $-$ share repurchase,$\backslash$times $,,1,000,000\backslash$times $],[,,$Retained earnings,$\backslash$times $,,27,000,000\backslash$times $],[,,,,18,000,000\backslash$times $,],[$C$,$November $14,202,$Cash,$\backslash$times $,,1,000,000\backslash$times $],[,,$Paid$-$in capital $-$ share repurchase,$\backslash$times $,,17,000,000\backslash$times $],[,,$Retained earnings,,,$]]$ 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 $10).$

statement effects $[$LO$18-5]$

The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December $31,$

$2023$:

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 $2$ million shares at $$14$ per share.

c$.$ On November $14,2026,$ the corporation sold $2$ 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.