GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
9th Edition
ISBN: 9781260089042
Author: J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 18, Problem 18.4P
To determine
Transactions related to retained earnings
Retained earnings:
Retained earnings are the portion of earnings kept by the business for the purpose of reinvestments, payment of debts, or for future growth.
To
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Exercise 18-23 (Algo) Transactions affecting retained earnings [LO18-6, 18-7, 18-8]
The balance sheet of Consolidated Paper, Incorporated, included the following shareholders' equity accounts at December 31, 2023:
Paid-in capital:
Preferred stock, 8.0%, 83,000 shares at $1 par
Common stock, 333,300 shares at $1 par
Paid-in capital-excess of par, preferred
Paid-in capital-excess of par, common
Retained earnings
Treasury stock, at cost; 3,300 common shares
Total shareholders' equity
During 2024, several events and transactions affected the retained earnings of Consolidated Paper.
Required:
1. Prepare the appropriate entries for these events:
$ 83,000
333,300
1,455,000
2,505,000
8,345,000
(36,300)
$ 12,685,000
a. On March 3, the board of directors declared a property dividend of 215,000 shares of Leasco International common stock
that Consolidated Paper had purchased in January as an investment (book value: $632,000). The investment shares had a
fair value of $3 per share and were…
Problem 18-5 (Static) Shareholders' equity transactions; statement of shareholders' equity [LO18-6,18-
7,18-8]
Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2021=2023. At
December 31, 2020, the corporation's accounts included:
57:28
Common stock, 105 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
sin
thousands)
$105,000
630,000
970,000
at
nces
a. November 1, 2021, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to
shareholders of record November 15, to be paid December
b On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that
Branch Rickie was holding as an investment. The bonds had a fair value of $1.6 million, but were purchased two years previously for
$1.3 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The…
6) Exercise 18-23 (Static) Transactions affecting retained earnings [LO18-6, 18-7, 18-8]
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2020:
Paid-in capital:
Preferred stock, 8.8%, 90,000 shares at $1 par
$
90,000
Common stock, 364,000 shares at $1 par
364,000
Paid-in capital—excess of par, preferred
1,437,000
Paid-in capital—excess of par, common
2,574,000
Retained earnings
9,735,000
Treasury stock, at cost; 4,000 common shares
(44,000
)
Total shareholders' equity
$
14,156,000
During 2021, several events and transactions affected the retained earnings of Consolidated Paper. Required:1. Prepare the appropriate entries for these events:
On March 3, the board of directors declared a property dividend of 240,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $700,000). The investment…
Chapter 18 Solutions
GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
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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