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The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 330 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 330 2,310 1 2,300 Required: 1. During 2021, 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, 2021, TNL Systems purchased 8 million shares at $10 per share. b. On July 9, 2021, the corporation sold 2 million shares at $12 per share. c. On November 14, 2023, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to shareholders as cash dividends. No Debit Credit 8 56 Date General Journal February 05, 2021 Common stock Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Cash 1 15 80 B July 09, 2021 Cash 24 2 Common stock Paid-in capital - excess of par >> 22 14 November 14, 202 Cash Common stock Paid-in capital - excess of par > 12 No General Journal Debit Credit A Date February 05, 2021 Treasury stock Cash > 80 80 B July 09, 2021 24 Cash Treasury stock Paid-in capital - share repurchase 20 OO 4 14 November 14, 202 Cash Paid-in capital - share repurchase Retained earnings Treasury stock >> 2 4 X 20 Shareholder's Equity (s in millions) Retirement Treasury stock $ $ Paid-in capital: Common stock Paid-in capital - excess of par Retained earnings Less: Treasury stock Total shareholders' equity 326 2,288 2,285 0 4,899 330 2,310 2,298 40 4,898 $ $

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