at december 31 2017 the balance sheet of meca international at december 31 2017 the 4137684

At December 31 2017 the balance sheet of Meca International

At December 31, 2017, the balance sheet of Meca International included the following shareholders’ equity accounts:

Shareholders’ Equity …………………………………….($ in millions)

Common stock, 60 million shares at $1 par …………………………$ 60

Paid-in capital-excess of par ………………………………………..300

Retained earnings ……………………………………………………..410

Required:

Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions:

1. On February 12, 2018, Meca reacquired 1 million common shares at $13 per share.

2. On June 9, 2019, Meca reacquired 2 million common shares at $10 per share.

3. On May 25, 2020, Meca sold 2 million treasury shares at $15 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.

At December 31 2017 the balance sheet of Meca International

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