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National Supplys shareholders equity included the following accounts at December 31, 2020:

Shareholders' Equity
Common stock, 6 million shares at $1 par	$	6,000,000
Paid-in capitalexcess of par		36,000,000
Retained earnings		76,000,000

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.

February 15, 2021	Reacquired 180,000 shares at $9 per share.
February 17, 2022	Reacquired 180,000 shares at $6.50 per share.
November 9, 2023	Sold 110,000 shares at $8 per share (assume FIFO cost).

2. Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2021, $15 million in 2022, and $16 million in 2023. No dividends were paid during the three-year period.

Prepare the entry for each of the transactions given in the requirement above. Assume shares are retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Record the purchase of shares on February 15, 2021 for retirement.

Note: Enter debits before credits.

	Date General Journal Debit Credit February 15, 2021

Journal entry worksheet

Record the purchase of shares on February 17, 2022 for retirement.

Note: Enter debits before credits.

	Date General Journal Debit Credit February 17, 2022

Journal entry worksheet

Record the sale of shares on November 9, 2023.

Note: Enter debits before credits.

	Date General Journal Debit Credit November 09, 2023

Prepare the entry for each of the transactions given in the requirement above. Assume shares are treasury stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Record the purchase of 180,000 shares at $9 per share on February 15, 2021 that are accounted for as treasury stock.

Note: Enter debits before credits.

	Date General Journal Debit Credit February 15, 2021

Journal entry worksheet

Record the purchase of 180,000 shares at $6.50 per share on February 17, 2022 that are accounted for as treasury stock.

Note: Enter debits before credits.

	Date General Journal Debit Credit February 17, 2022

Journal entry worksheet

Record the sale of 110,000 shares at $8 per share (assume FIFO cost) on November 9, 2023. Note: Enter debits before credits.

	Date General Journal Debit Credit November 09, 2023

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