Chapter 18 Day 1 - 2 Paid-in capital—excess of par(2...

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Brief Exercise 18–3 Lewelling’s paid-in capital—excess of par will increase by $860,000: 4,000 hours x $240 less $100,000 par. Journal entry (not required): Legal expense (4,000 hours x $240) ..................................... 960,000 Common stock ( 100,000 shares x $ 1 par per share) ................ 100,000 Paid-in capital—excess of par (remainder) .................... 860,000 Brief Exercise 18–6 Horton’s total paid-in capital will decline by $17 million, the price paid to buy back the shares. Journal entry (not required): ($ in millions) Common stock (2 million shares x $1 par) ..................................
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Unformatted text preview: 2 Paid-in capital—excess of par (2 million shares x $9 * )................. 18 Paid-in capital—share repurchase (difference). .................... 3 Cash (2 million shares x $8.50 per share). ................................. 17 * Paid-in capital—excess of par: $900 ÷ 100 million shares Exercise 18–4 Cash (3 million shares x $17.15 per share). ............................. 51,450,000 Common stock (3 million shares x $.01 par per share). ....... 30,000 Paid-in capital—excess of par (remainder). ................... 51,420,000...
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