(Algo) Analyzing Treasury Stock Transactions LO11-3, 11-9 [The following information applies to the questions displayed below.]
Mango designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players. Mango employs over 92,000 people in the United States. A recent statement of cash flows contained the following information (in millions):
Year 3 Year 2 Year 1
Cash flows from financing activities:
Repurchases of common stock (146.9) (416.4 ) 0
P11-7 Part 1
Required:
A. Prepare the journal entry to record the purchase of treasury stock in Year 3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i. e., 5,500,000 should be entered as 5.5).)
B. Assume that Mango resold some of the treasury stock. The shares were originally purchased for $10.6 million and were resold for $13.2 million. Prepare the journal entry to record the sale of the treasury shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i. e., 5,500,000 should be entered as 5.5).)