Req 1 Retired Req 1 Treasury Stock Req 2 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). Shareholder's Equity $ in millions Retirement Treasury stock Paid-in capital: Common stock $ 238 Paid-in capital - excess of par 1,680 Retained earnings 1,089 Less: Treasury stock Total shareholders' equity $ 1,327 $ 1,680 < Req 1 Treasury Stock Req 2 > The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 240 1,680 1 1,100 1. 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 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. 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.
Req 1 Retired Req 1 Treasury Stock Req 2 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). Shareholder's Equity $ in millions Retirement Treasury stock Paid-in capital: Common stock $ 238 Paid-in capital - excess of par 1,680 Retained earnings 1,089 Less: Treasury stock Total shareholders' equity $ 1,327 $ 1,680 < Req 1 Treasury Stock Req 2 > The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 240 1,680 1 1,100 1. 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 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. 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.
Cornerstones of Financial Accounting
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Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
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Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
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Question
![Req 1 Retired Req 1 Treasury
Stock
Req 2
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).
Shareholder's Equity
$ in millions
Retirement Treasury stock
Paid-in capital:
Common stock
$
238
Paid-in capital - excess of par
1,680
Retained earnings
1,089
Less: Treasury stock
Total shareholders' equity
$
1,327
$
1,680
< Req 1 Treasury Stock
Req 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd5003e-956c-444b-9f6b-692f2f1beb36%2Faa843057-929a-4de6-8687-7f01c7043dd7%2F8a4sm4fb_processed.png&w=3840&q=75)
Transcribed Image Text:Req 1 Retired Req 1 Treasury
Stock
Req 2
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).
Shareholder's Equity
$ in millions
Retirement Treasury stock
Paid-in capital:
Common stock
$
238
Paid-in capital - excess of par
1,680
Retained earnings
1,089
Less: Treasury stock
Total shareholders' equity
$
1,327
$
1,680
< Req 1 Treasury Stock
Req 2 >
![The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31,
2023:
Shareholders' Equity
Common stock, 240 million shares at $1 par
Paid-in capital-excess of par
Paid-in capital-share repurchase
Retained earnings
Required:
($ in millions)
$ 240
1,680
1
1,100
1. 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 6 million shares at $10 per share.
b. On July 9, 2024, the corporation sold 2 million shares at $12 per share.
c. On November 14, 2026, the corporation sold 2 million shares at $7 per share.
2. 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd5003e-956c-444b-9f6b-692f2f1beb36%2Faa843057-929a-4de6-8687-7f01c7043dd7%2F30r68r_processed.png&w=3840&q=75)
Transcribed Image Text:The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31,
2023:
Shareholders' Equity
Common stock, 240 million shares at $1 par
Paid-in capital-excess of par
Paid-in capital-share repurchase
Retained earnings
Required:
($ in millions)
$ 240
1,680
1
1,100
1. 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 6 million shares at $10 per share.
b. On July 9, 2024, the corporation sold 2 million shares at $12 per share.
c. On November 14, 2026, the corporation sold 2 million shares at $7 per share.
2. 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.
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