The shareholders’ equity section of the balance sheet of TNL Systems Inc. includ

Question

The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:

During 2016, 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 retired. (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).)

The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:

Explanation / Answer

(In millions)

**Shares repurchase account is debited up to available balance = 1beginnning + 4 = 5

remaining is debited to paid in capital in excess of par

Date Account title Debit credit Feb 5 Treasury stock 60 cash (6*10) 60 [stock epurchased ] 9 july 2015 Cash   (2*12) 24 Treasury stock    (2*10) 20 Additional paid in capital -Treasury stock   (2*2) 4 [Treasury stock sold] Nov 14 Cash     (2*7) 14 paid in capital -shares repurchase 5 Paid in capital in excess of par 1 Treasury stock   (2*10) 20

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