Unit 7 Problem - Problem 18-1 Part A Jan. 9 Cash (40...

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Problem 18-1 Part A Jan. 9 ($ in millions) Cash (40 million shares x $20 per share) 800 Common stock (40 million shares x $1 par) Paid-in capital – excess of par (difference) Mar. 11 Equipment (5,000 shares x $20 per share) 100,000 Common stock (5,000 shares x $1 par) Paid-in capital – excess of par (difference) Part B Jan. 12 ($ in millions) Land Revenue – donation of land Note: Donated assets are recorded as revenue at the fair value of the assets received, not paid-in capital. This is discussed in Chapter 10. Sept. 1 ($ in millions) Common stock (2 million shares x $1 par) 2 Paid-in capital – excess of par (2 million shares x $19) 38 Retained earnings (difference) 10 Cash Dec. 1 ($ in millions) Cash Common stock Paid-in capital – excess of par Problem 18-3 Requirement 1 15-Feb-11 (a) Retired Common stock (300,000 shares x $1 par) 300,000 Paid-in capital – excess of par (300,000 shares x $5) 1,500,000 Retained earnings (difference) 600,000 Cash (300,000 shares x $8)
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(b) Accounted for as treasury stock Treasury stock (300,000 shares x $8) 2,400,000 Cash (300,000 shares x $8) 17-Feb-12 (a) Retired Common stock (300,000 shares x $1 par)
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This note was uploaded on 02/29/2012 for the course INTERMEDIA 301 taught by Professor ?? during the Spring '12 term at Post.

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Unit 7 Problem - Problem 18-1 Part A Jan. 9 Cash (40...

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