Question

At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts: Shareholders' Equity ($ in millions) Common stock, 70 million shares at $1 par $ 70 Paid-in capital-excess of par Retained earnings 610 500 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the Hollowing transactions: (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).) 1. On February 12, 2021, Meca reacquired 1 million common shares at $20 per share. 2. On June 9, 2022. Meca reacquired 2 million common shares at $17 per share. 3. On May 25, 2023, Meca sold 2 million treasury shares at $23 per share. Determine cost as the weighted average cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method. View transaction list Journal entry worksheet 3 4 Record the reacquisition of 1 million common shares at $20 per share. Note: Enter debits before credits General Journal Debit Credit Date February 12 2021

Answer 1

- Answer Treasury Stock Trequery Stoch is the stock which is buy bached I from the shareholders of the company Treasury stock | reduces the control of Outsiders on company. By purchasing own shares in the form of treasury stoch, company also reduces the liability of the buiten of the dividend to the stockholders

Meca_Intexnational Inc, Journal Envies. Date Obit (6) Credit (6) IT 11/2/21 Pautjullyos Reacquisition of 1 million common shares I at $ 20 per share 20 Treasury stock Alc a - To Gsh Ne (Being to record reacquisition of common share of million @ no per shave) million shores at 9/6/22 - Reqcquisition of a $ 17 new share 34 Trequiry Stock Ale Ovo To Cash Ale (Being to record eacquisition of 2 milion Gmmh shares @ 17_ped where) 08/3/23 | sale of 2 million treasury shares al 423 ppw share as per weighted quevage last methods 46 6 Cash Ale (W. No. 1 On To Treastry stuck Ala 1 To paid in capital from Treasny slock (being to record sale of 1 millian freadery share and arose of pait in capital from breasty stolk)

(25/8/23 for the previous hansaction, assum. Med_use s file Methull - - I Cash Ale (W.No, 2 t a on 1 46 To frequery Stock To pait-in-capital from Treasury Stock (Being to record sale of treasury Stock of a million shares @ 23 per Shave and grove of paid-in. capite 1) Total | 146 146 Wonline Notes (1) Weighted Average cost of shares treysurya Weighted Average cost of breasury shares is calculated by the total cost of shaver quailable for sale juised by the number of shares quailable for sales Welghted of Average best Treasury shares Total cost of share Totyl No. of share hie = $(10 + 34 million ( +2) million shares $ 54 million . 3 million shares = $ 18 per share -