National Supply's shareholders' equity included the following accounts at December 31, 2015: ($ in millions) Shareholders' Equity $ 6,000,000 Common stock, 6 million shares at $1 par Paid-in capital-excess of par Retained earnings 30,000,000 86,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Pre- pare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2016 February 17, 2017 November 9, 2018 Reacquired 300,000 shares at $8 per share. Reacquired 300,000 shares at $5.50 per share. Sold 200,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2018, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2016, $15 million in 2017, and $16 million in 2018. No dividends were paid during the three-year period.
National Supply's shareholders' equity included the following accounts at December 31, 2015: ($ in millions) Shareholders' Equity $ 6,000,000 Common stock, 6 million shares at $1 par Paid-in capital-excess of par Retained earnings 30,000,000 86,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Pre- pare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2016 February 17, 2017 November 9, 2018 Reacquired 300,000 shares at $8 per share. Reacquired 300,000 shares at $5.50 per share. Sold 200,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2018, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2016, $15 million in 2017, and $16 million in 2018. No dividends were paid during the three-year period.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter12: Statement Of Stockholders’ Equity (stockeq)
Section: Chapter Questions
Problem 3R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...
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