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4 of 4 (0 complete ) Requirement on reported the stockholders equity in millions

ID: 2436486 • Letter: 4

Question

4 of 4 (0 complete ) Requirement on reported the stockholders equity in millions, except per-share amounts)1. Prepare the stockholders' equity section of the compa Journal Entry Debit Credit Accounts (in millions) 138 Common Stock 90 Paid in Capital in Excess of Par 48: Treasury Stock 48 Cash 42 Cash 36 Treasury Stock Paid-in Capital from Treasury Stock Retained Earnings 29 Dividends Payable 29 Dividends Payable 29 Cash 29 PrintDone number in the input fields and then continue to the next question

Explanation / Answer

Answers

Transaction

Adjustments

Common Stock

Paid In Capital in excess of Par Value

Paid In Capital - Treasury Stock

Retained Earnings

Treasury Stock at cost

Total stockholder's Equity

no.

Beginning balances

$                                     92.00

$                       12.00

$                              260.00

$                         (50.00)

$                                                       314.00

a.

Net Income

$                              451.00

b.

Issuance of stock

$                                     48.00

$                       90.00

c.

Purchase of Treasury Stock

$                         (48.00)

d.

Sale of Treasury Stock

$                                6.00

$                           36.00

e.

Cash Dividends

$                              (29.00)

Total

Ending Balances

$                                   140.00

$                     102.00

$                                6.00

$                              682.00

$                         (62.00)

$                                                       868.00

Amounts in $ millions

Stockholder's Equity

Common Stock $4 par, Issued shares 35 millions

$                                   140.00

Paid In Capital in excess of Par - Common

$                                   102.00

Paid In Capital from Treasury Stock Transactions

$                                        6.00

Retained Earnings

$                                   682.00

Treasury Stock

$                                   (62.00)

Total Stockholder's Equity

$                                   868.00

Transaction

Adjustments

Common Stock

Paid In Capital in excess of Par Value

Paid In Capital - Treasury Stock

Retained Earnings

Treasury Stock at cost

Total stockholder's Equity

no.

Beginning balances

$                                     92.00

$                       12.00

$                              260.00

$                         (50.00)

$                                                       314.00

a.

Net Income

$                              451.00

b.

Issuance of stock

$                                     48.00

$                       90.00

c.

Purchase of Treasury Stock

$                         (48.00)

d.

Sale of Treasury Stock

$                                6.00

$                           36.00

e.

Cash Dividends

$                              (29.00)

Total

Ending Balances

$                                   140.00

$                     102.00

$                                6.00

$                              682.00

$                         (62.00)

$                                                       868.00

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