3167822523 - Problem 18-2 Requirement 1 a. February 5, 2006...

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Unformatted text preview: Problem 18-2 Requirement 1 a. February 5, 2006 ($ in millions) * Paid-in capital excess of par: $1,680 240 b. July 9, 2006 c. November 14, 2008 Retirement Treasury Stock Common stock (6 million sh. x $1) 6 Treasury stock (6 million sh. x $10) 60 Paid-in capital excess of par Cash 60 (6 million shares x $7 * ) 42 Paid-in capital share repurchase 1 Retained earnings (plug) 11 Cash 60 Cash (2 million sh. x $12) 24 Cash (2 million sh. x $12) 24 Common stock (2 million sh. x $1) 2 Treasury stock (2 million sh. x $10) 20 Paid-in capital excess of par 22 Paid-in capitalsh. repurchase 4 Problem 18-2 (concluded) Requirement 2 Treasury Retirement Stock Paid-in capital: Common stock, 240 million shares at $1 par, ............... $ 238 $ 240 Paid-in capital excess of par ....................................... 1,672 * 1,680 Paid-in capital share repurchase.................................. Retained earnings ......................................................... 1,089 ** 1,099 *** Less: treasury stock, 2 million shares (at cost)........... (20 ) Total shareholders equity ............................................. $2,999 $2,999 * 1,680 - 42 + 22 + 12 ** 1,100 - 11 *** 1,100 - 1 or, alternatively: Paid-in capital: Common stock, 240 million shares at $1 par, ............... $ 238 $ 240 Additional paid-in capital............................................... 1,672 * 1,680 Retained earnings...
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This note was uploaded on 04/07/2008 for the course DSF 334 taught by Professor Fs during the Spring '08 term at George Mason.

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3167822523 - Problem 18-2 Requirement 1 a. February 5, 2006...

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