{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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 capital–sh. repurchase 4
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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 .................................. 0 0 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 ......................................................... 1,089 ** 1,099 *** Less:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}