INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 18, Problem 18.12E
• LO18–5
In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.
Required:
Prepare the appropriate
- 1. On January 23, 2018, Western Transport reacquired 10 million shares at $20 per share.
- 2. On September 3, 2018, Western Transport sold 1 million treasury shares at $21 per share.
- 3. On November 4, 2018, Western Transport sold 1 million treasury shares at $18 per share.
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Exercise 18-10 (Algo) Retirement of shares [LO18-5]
Borner Communications' articles of incorporation authorized the issuance of 125 million common shares. The transactions described
below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following:
Shareholders' Equity
Common stock, 110 million shares at $1 par
Paid-in capital - excess of par
Retained earnings
($ in millions)
$ 110
330
220
Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares),
record the appropriate journal entry for each of the following transactions:
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions (i.e., 10,000,000 should be entered as 10).
1. On January 7, 2024, Borner reacquired 4 million shares at $6.00 per share.
2. On August 23, 2024, Borner reacquired 6…
Problem 4
On December 29, 2018, Blue Company was registered at the Securities and Exchange
Commission with 100,00 authorized shares of P100 par value. The following were Blue's
transactions:
December 29, 2018
May 14, 2019
August 9, 2019
December 31, 2019
Issued 40,000 shares at P105 per share.
Purchased 600 of its ordinary shares at P110 per share.
400 treasury shares were resold at P95 per share.
Profit for 2019 is P830,000. Dividends paid P200,000.
34. What is the total outstanding shares?
35. What is the balance of treasury shares?
36. How many shares are entitled to receive dividends?
37. What is the total shareholders' equity?
Problem 5
Partners A & B have capital balances of P600,000 and P400,000 and share profits and losses
in the ratio of 3:2, respectively, before the admission of C. With the consent of B, A sells one-half
of his equity to C, with C paying A the amount of P350,000.
38. What is A's capital balance after the admission of C?
39. What is the total partnership…
ces
On December 31, 2023, Berclair Incorporated had 480 million shares of common stock and 18 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding.
. On March 1, 2024, Berclair purchased 120 million shares of its common stock as treasury stock.
• Berclair issued a 5% common stock dividend on July 1, 2024.
• Four million treasury shares were sold on October 1.
• Net income for the year ended December 31, 2024, was $900 million.
Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2019.
• The options were exercisable as of September 13, 2023, for 63 million common shares at an exercise price of $60 per share.
During 2024, the market price of the common shares averaged $70 per share.
• The options were exercised on September 1, 2024.
Required:
Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and
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Chapter 18 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Cash dividend LO188 Real World Financials...Ch. 18 - Effect of preferred stock on dividends LO187 The...Ch. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Comprehensive income LO182 The following is from...Ch. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Reporting preferred shares LO184, LO187 Ozark...Ch. 18 - Prob. 18.9ECh. 18 - Prob. 18.10ECh. 18 - Retirement of shares LO185 In 2018, Borland...Ch. 18 - Treasury stock LO185 In 2018, Western Transport...Ch. 18 - Treasury stock; weighted-average and FIFO cost ...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.15ECh. 18 - Prob. 18.16ECh. 18 - Transact ions affecting retained earnings LO186,...Ch. 18 - Effect of cumulative, nonparticipating preferred...Ch. 18 - Stock dividend LO188 The shareholders equity of...Ch. 18 - Prob. 18.20ECh. 18 - Cash in lieu of fractional share rights LO188...Ch. 18 - Prob. 18.22ECh. 18 - Transact ions affecting retained earnings LO186...Ch. 18 - Profitability ratio LO181 Comparative balance...Ch. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Share buybackcomparison of retirement and treasury...Ch. 18 - Reacquired sharescomparison of retired shares and...Ch. 18 - Prob. 18.4PCh. 18 - Shareholders equity transactions; statement of...Ch. 18 - Prob. 18.6PCh. 18 - Prob. 18.7PCh. 18 - Prob. 18.8PCh. 18 - Effect o f preferred stock characteristics on...Ch. 18 - Prob. 18.10PCh. 18 - Stock dividends received on investments;...Ch. 18 - Various shareholders equity topics; comprehensive ...Ch. 18 - Prob. 18.13PCh. 18 - Prob. 18.1BYPCh. 18 - Prob. 18.2BYPCh. 18 - Research Case 184 FASB codification; comprehensive...Ch. 18 - Judgment Case 185 Treasury stock; stock split;...Ch. 18 - Prob. 18.6BYPCh. 18 - Prob. 18.7BYPCh. 18 - Prob. 18.8BYPCh. 18 - Prob. 1CCTC
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