Problem $18-2($Algo$)$ Share buyback$$comparison of retirement and treasury stock treatment; financial statement effects $[$LO$18-5]$

The shareholders$$ equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December $31,2023$:

Shareholders' Equity $($$ in millions$)$

Common stock, $270$ million shares at $$1$ par $ $270$

Paid$-$in capital$$excess of par $1,890$

Paid$-$in capital$$share repurchase $2$

Retained earnings $1,700$

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.

On February $5,2024,$ TNL Systems purchased $7$ million shares at $$11$ per share.

On July $9,2024,$ the corporation sold $3$ million shares at $$13$ per share.

On November $14,2026,$ the corporation sold $3$ million shares at $$8$ 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 $20242026$ was distributed to shareholders as cash dividends.