Question

The shareholders’ equity section of the balance sheet of ABC Inc. included the following accounts at...

The shareholders’ equity section of the balance sheet of ABC Inc. included the following accounts at December 31, 2017

Shareholders’ Equity

($ in millions)

Common stock, 240 million shares at $1 par

$ 240

Paid-in capital—excess of par

1,680

Paid-in capital—share repurchase

1

Retained earnings

1,100

In subsequent years, ABC reacquired shares of its common stock and later sold shares in two separate transactions. ABC consider the repurchased shares as retired shares:

  1. On February 5, 2018, ABC purchased 6 million shares at $10 per share.
  2. On July 9, 2018, the corporation sold 2 million shares at $12 per share.
  3. On November 14, 2020, the corporation sold 2 million shares at $7 per share.

Required:

Prepare the shareholders’ equity section of ABC balance sheet at December 31, 2020. Assume net income earned in 2018–2020 were distributed to shareholders as cash dividends.

Homework Answers

Answer #1
Shareholder's Equity Retirement explanation
Paid in Capital:
Common stock $238 $240-6+2+2
Paid-in capital—excess of par $1,672 $1680-42+22+12
Retained earnings $1089 $1100-11
Total Shareholder's Equity $2999
common stock
co purchase 6million *1(parvalue ) 6
co sold 2million *1 2
co sold 2 million *1 2
co purchsed share so give cash 6million *10 = 60 million
the actuall price is 1 per share so value = - 6 million
co pay excess amount on purchase 1680/240*6 = -42
paid in share repurchase = -1
co pay from retained earning balance = 11
paid in excess par
when co purchase 6 miliion co pay excess par =1680/240*6 (42)
when co sold 2 million co receive excess (selling price 12 -1 par value )=11*2million +22
on nov when co sold 2 million co receive excess (7 selling price -1 par value )=6*2 +12
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31,...
The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31, 2020: ($ in millions) Common stock ($1 par, authorized 200 million shares, issued and outstanding 180 million shares) $ 180 Paid-in capital—excess of par 1,080 Retained earnings 560 Total shareholders' equity $ 1,820 On January 5, 2021, FIFA purchased and retired 2 million shares for $18 million. Immediately after retirement of the shares, the balances in the retained earning account is:
At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts:...
At December 31, 2020, the balance sheet of Meca International included the following shareholders' equity accounts: Shareholders’ Equity ($ in millions) Common stock, 65 million shares at $1 par $ 65 Paid-in capital—excess of par 490 Retained earnings 600 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field....
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020: ($...
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020: ($ in millions) Paid-in capital: Common stock, 1,700 million shares at $1 par $ 1,700 Paid-in capital—excess of par 17,400 Retained earnings 16,088 Total shareholders’ equity $ 35,188 On March 16, 2021, a 4% common stock dividend was declared and distributed. The market value of the common stock was $37 per share. Fractional share rights represented 3 million equivalent whole shares. Cash was paid in...
included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...
included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...
Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...
Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...
Accounting for Shareholders’ Equity Transactions The shareholders’ equity section of the consolidated balance sheet of Perry...
Accounting for Shareholders’ Equity Transactions The shareholders’ equity section of the consolidated balance sheet of Perry Corporation appeared as follows at the beginning of the year. Common stock, $1.00 par value $ 100,000 Additional paid-in-capital 1,200,000 Convertible preferred stock, no par value 800,000 Retained deficit (600,000) Treasury stock (250,000) Sharholders' equity $1,250,000 The following transactions occurred during the year: 1. Generated net income of $80,000. 2. Paid cash dividends of $220,000. 3. Issued a ten percent common stock dividend; the...
Following is the stockholders’ equity section of the Saints, Inc. 20X8 balance sheet ($ in thousands):...
Following is the stockholders’ equity section of the Saints, Inc. 20X8 balance sheet ($ in thousands): 20X8 Common stock, $0.0001 par value (shares authorized—240,000,000, shares issued – 73,549,872) 7 Additional paid-in capital 551,004 Treasury stock, at cost 4,223,670 shares (218,692) Retained earnings 1,063,633 Accumulated other comprehensive loss     (1,345) Total shareholders’ equity $1,394,607 Required:. a. Saints has 240 million shares of common stock authorized, but only 73,549,872 shares issued. Why is there a difference between these two numbers? b. Verify...
"Stockholders' Equity" Section of Balance Sheet The following accounts and their balances appear in the ledger...
"Stockholders' Equity" Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $265,500 Paid-In Capital from Sale of Treasury Stock 11,500 Paid-In Capital in Excess of Par—Common Stock 21,240 Retained Earnings 438,000 Treasury Stock 16,435 Prepare the "Stockholders' Equity" section of the balance sheet as of June 30. Fifty thousand shares of common stock are authorized, and 865 shares have been...
Presented below if the stockholders’ equity section of Blue Corporation at December 31, 2020: Common stock,...
Presented below if the stockholders’ equity section of Blue Corporation at December 31, 2020: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares $900,000 Paid-in-capital in excess of par value 350,000 Retained earnings 500,000 During 2021, the following transactions occurred related to stockholder’ equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 3,200 shares of treasury stock were sold at $30 per share. For the year ended December...
Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger...
Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $796,500 Paid-In Capital from Sale of Treasury Stock 32,700 Paid-In Capital in Excess of Par—Common Stock 21,240 Retained Earnings 1,250,000 Treasury Stock 16,435 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT