reacquired shares comparison ofretired shares andtreasury shares 460160

National Supply’s shareholders’ equity included the following accounts at December 31, 2010:

Shareholders’ Equity

Common stock, 6 million shares at $1 par $ 6,000,000

Paid-in capital”excess of par 30,000,000

Retained earnings 86,500,000

Prepare the shareholders’ equity section of National Supply’s balance sheet at December 31, 2013, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2011, $15 million in 2012, and $16 million in 2013. No dividends were paid during the three-year period.

Shareholders’ Equity SHARES RETIRED TREASURY STOCK

Paid-in capital: $___________ $___________

Common stock $___________ $___________

Paid-in capital ‘ excess of par $___________ $___________

Paid-in capital ‘ share repurchase $___________ $___________

Retained earnings $___________ $___________

Less: Treasury stock $___________ $___________

Total shareholders’ equity $___________ $___________