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Category > Management Posted 06 Jan 2018 My Price 7.00

National Supply

Reacquired shares— comparison of retired shares and treasury shares

National Supply’s shareholders’ equity included the following accounts at December 31, 2015:

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.

2. Prepare the shareholders’ equity section of National Supply’s balance sheet at December 31, 2018, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2016, $15 million in 2017, and $16 million in 2018. No dividends were paid during the three-year period.

 

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Maurice Tutor
(5)
Status NEW Posted 06 Jan 2018 10:01 PM My Price 7.00

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