Question

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:
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

$556 million.

working;

par value per share of common stock =$1.

paid in capital in excess of par per share = $1080 million / 180 million shares =>$6.

total value per share = $6+$1=>$7.

value that can be attributable to 2 million shares sold =>$7 * 2 million =>$14 million.

actual retirement value of shares =$18 million.

excess amount debited to retained earnings =>$18 million - $14 million =>$4 million.

the balance of retained earnings will be = $560 million existing- $4 million excess amount =>$556 million.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Joy Co.’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
Joy Co.’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 9 million shares at $1 par $ 9,000,000 Paid-in capital—excess of par 72,000,000 Paid-in capital—share repurchases 587,000 Retained earnings 80,500,000 On February 15, Joy reacquired 300,000 shares of its common stock at $12 and retired the shares. Net income for 2021 was $7 million. Determine the balances of Retained Earnings and Paid-in Capital - Excess of Par on the balance sheet dated December 31,...
The shareholders’ equity section of the balance sheet of ABC Inc. included the following accounts at...
The shareholders’ equity section of the balance sheet of ABC Inc. included the following accounts at December 31, 2017 Shareholders’ Equity ($ 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: On February 5, 2018, ABC purchased 6 million...
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...
The shareholders equity section of Yessir corporation at December 31, 2020 included the following: $6 preferred...
The shareholders equity section of Yessir corporation at December 31, 2020 included the following: $6 preferred shares cumulative, 10,000 shares authorized 8,000 shares issued            $800,000 Common shares, 250,000 shares authorized, 200,000 shares issued                                  $2,000,000 Dividends were not declared on the preferred shares in 2020 and are in arrears. On September 15, 2021, the board of directors of yessir corporation declared on the preferred shares for 2020 and 2021, to shareholders of record on October 1, 2021, payable on October 15,2021...
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a...
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a authorized 100,000 shares; issued 33,000 shares $ 1,155,000 Common shares (unlimited authorized, 51,000 issued) 1,275,000 Contributed surplus 107,000 Total paid-in capital 2,537,000 Retained earnings 2,962,600 Total shareholders’ equity $ 5,499,600 a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Q. No dividends were paid in 2018 or 2019....
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock,...
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital—excess of par 12,000,000 Retained earnings 19,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $34 on April 1, 2021, and $44 on...
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 $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...
Problem 18-2 Share buyback-comparison of retirement and treasury stock treatment [LO18-5] The shareholders’ equity section of...
Problem 18-2 Share buyback-comparison of retirement and treasury stock treatment [LO18-5] The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2017: Shareholders' Equity ($ in millions) Common stock, 250 million shares at $1 par $ 250 Paid-in capital—excess of par 2,250 Paid-in capital—share repurchase 2 Retained earnings 1,500 Required: 1. During 2018, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT