Chap018.xls
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-03 Requirement 1: NATIONAL SUPPLY General Journal Account Debit Credit February 15, 2011 Retired Common stock 300,000 Paid-in capital - excess of par 1,500,000 Retained earnings 600,000 Cash 2,400,000 «- Correct! Accounted for as treasury stock Treasury stock 2,400,000 Cash 2,400,000 «- Correct! February 17, 2012 Retired Common stock 300,000 Paid-in capital - excess of par 1,500,000 Paid-in capital - share repurchase 150,000 «- Correct! Cash 1,650,000 Accounted for as treasury stock Treasury stock 1,650,000 Cash 1,650,000 «- Correct! November 9, 2013 Retired Cash 1,400,000 Common stock 200,000 Paid-in capital - excess of par 1,200,000 «- Correct! Accounted for as treasury stock Cash 1,400,000 Retained Earnings 200,000 Treasury stock 1,600,000 «- Correct! NATIONAL SUPPLY Shareholders' Equity At January 1, 2013 Shares Treasury Retired Stock Paid-in capital:
Transcript of Chap018.xls
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-03
Requirement 1:NATIONAL SUPPLY
General Journal
Account Debit CreditFebruary 15, 2011RetiredCommon stock 300,000 Paid-in capital - excess of par 1,500,000 Retained earnings 600,000 Cash 2,400,000
Accounted for as treasury stockTreasury stock 2,400,000 Cash 2,400,000
February 17, 2012RetiredCommon stock 300,000 Paid-in capital - excess of par 1,500,000 Paid-in capital - share repurchase 150,000 Cash 1,650,000
Accounted for as treasury stockTreasury stock 1,650,000 Cash 1,650,000
November 9, 2013RetiredCash 1,400,000 Common stock 200,000 Paid-in capital - excess of par 1,200,000
Accounted for as treasury stockCash 1,400,000 Retained Earnings 200,000 Treasury stock 1,600,000
NATIONAL SUPPLYShareholders' Equity
At January 1, 2013
Shares TreasuryRetired Stock
Paid-in capital:Common stock, $1 par $ 5,600,000 $ 6,000,000 Paid-in capital - excess of par 28,200,000 30,000,000 Paid-in capital - share repurchase 150,000 -
D12
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D51
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Retained earnings 130,900,000 131,300,000 Less: treasury stock (2,450,000)Total shareholders' equity $ 164,850,000 $ 164,850,000
Correct! Correct!
«- Correct!
«- Correct!
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«- Correct!
«- Correct!
Given Data P18-03:
NATIONAL SUPPLYBalance Sheet
At December 31, 2010($ in millions)
Shareholders' EquityCommon stock (6 million shares at $1 par) $ 6,000,000 Paid -in capital - excess of par 30,000,000 Retained earnings (deficit) 86,500,000
Shares reacquired 2/15/2011 300,000 Price per share $ 8 Shares reacquired 2/17/2012 300,000 Price per share $ 6 Shares sold 11/9/2013 200,000 Price per share $ 7 Net income for 2011 $ 14,000,000 Net income for 2012 $ 15,000,000 Net income for 2013 $ 16,000,000
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-05
Requirement 1:BRANCH-RICKIE CORPORATION
General Journal
Account Debit Credit2011November 1 - declaration dateRetained earnings 84,000,000 Cash dividends payable 84,000,000 «- Correct!
November 15 - date of record no entry
December 1 - payment dateCash dividends payable 84,000,000 Cash 84,000,000 «- Correct!
2012March 1 - declaration dateInvestment in Warner bonds 300,000 Gain on appreciation of investment 300,000 «- Correct!
Retained earnings 1,600,000 Property dividends payable 1,600,000 «- Correct!
March 13 - date of record no entry
April 5 - payment dateProperty dividends payable 1,600,000 Investment in Warner bonds 1,600,000 «- Correct!
July 12Retained earnings 110,250,000 «- Correct!
Common stock 5,000,000 Paid-in capital - excess of par 100,000,000 Cash 5,250,000 November 1 - declaration dateRetained earnings 88,000,000 Cash dividends payable 88,000,000 «- Correct!
November 15 - date of record no entry
December 1 - payment dateCash dividends payable 88,000,000 Cash 88,000,000 «- Correct!
2013January 15Paid-in capital - excess of par 55,000,000 Common stock 55,000,000 «- Correct!
November 1 - declaration dateRetained earnings 107,250,000 Cash dividends payable 107,250,000 «- Correct!
November 15 - date of record no entry
A12
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D12
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-05
December 1 - payment dateCash dividends payable 107,250,000 Cash 107,250,000 «- Correct!
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-05
Requirement 2:BRANCH-RICKIE CORPORATIONStatement of Shareholders' Equity
For the Years Ended December 31, 2011, 2012 and 2013($ in 000s)
Additional TotalCommon Paid-in Retained Shareholders'
Stock Capital Earnings EquityJan. 1, 2011 105,000 630,000 970,000 1,705,000 Net income 330,000 330,000 Cash dividends (84,000) (84,000)Dec. 31, 2011 105,000 630,000 1,216,000 1,951,000
Correct! Correct! Correct! Correct!
Property dividends (1,600) (1,600) Common stock dividend 5,000 100,000 (110,250) (5,250) Net income 395,000 395,000 Cash dividends (88,000) (88,000)Dec. 31, 2012 110,000 730,000 1,411,150 2,251,150
Correct! Correct! Correct! Correct!
3 for 2 split effected in the form of a stock dividend 55,000 (55,000) Net income 455,000 455,000 Cash dividends (107,250) (107,250)Dec. 31, 2013 165,000 675,000 1,758,900 2,598,900
Correct! Correct! Correct! Correct!
D72
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Given Data P18-05:
BRANCH-RICKIE CORPORATION
Common stock, 105 million shares at $1 par $ 105,000,000 Paid-in-capital--excess of par 630,000,000 Retained earnings 970,000,000
Cash dividend declared on common shares, 11/1/2011 $ 0.80 per shareBond fair value $ 1,600,000 Bond purchase price $ 1,300,000 % Common stock dividend declared and distributed 5%Market value of common stock, 7/12/2012 $ 21.00 per shareEquivalent whole shares $ 250,000 Cash dividend declared on common shares, 11/1/2012 $ 0.80 per shareStock split form 50%Market value of common stock, 1/15/2013 $ 22.00 Cash dividend declared on common shares, 11/1/2013 $ 0.65 per shareNet income for year 2011 $ 330,000,000 Net income for year 2012 $ 395,000,000 Net income for year 2013 $ 455,000,000
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-12
Part A, Requirement 1:General Journal
Account Debit CreditJanuary 2, 2011Cash 30,000,000 «- Correct!
Common stock 3,000,000 Paid-in capital - excess of par, common 27,000,000 January 2, 2011Cash 20,000,000 «- Correct!
Preferred stock 5,000,000 Paid-in capital - excess of par, preferred 15,000,000
Part A, Requirement 2:NICKLAUS CORPORATION
Balance Sheet-Shareholders' Equity SectionMarch 31, 2011
Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, $ 5,000,000 issued and outstanding 1,000,000 shares Common stock, $1 par, authorized 5,000,000 shares, 3,000,000 issued and outstanding 3,000,000 shares 42,000,000 Paid-in capital - excess of par 1,000,000 Retained earnings $ 51,000,000 Total shareholders' equity Correct!
D9
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E24
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-12
Part B, Requirement 1:NICKLAUS CORPORATION
General Journal
Account Debit CreditJune 30, 2011Treasury stock 2,400,000 Cash 2,400,000 «- Correct!
July 31, 2011Cash 750,000 «- Correct!
Treasury stock 600,000 Paid-in capital - share repurchase 150,000 September 30, 2011Cash 500,000 Paid-in capital - share repurchase 100,000 Treasury stock 600,000 «- Correct!
Part B, Requirement 2:NICKLAUS CORPORATION
Balance Sheet-Shareholders' Equity SectionSeptember 30, 2011
Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, issued and outstanding 1,000,000 shares $ 5,000,000 Common stock, $1 par, authorized 5,000,000 shares, issued 3,000,000 shares, 2,900,000 shares outstanding 3,000,000 Paid-in capital - excess of par 42,000,000 Paid-in capital - share repurchase 50,000 Retained earnings 4,000,000
$ 54,050,000 Less: Treasury stock (200,000 shares at cost) (1,200,000) Total shareholders' equity $ 52,850,000
Correct!
D39
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E58
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-12
Part C, Requirement 1:NICKLAUS CORPORATION
General Journal
Account Debit CreditOctober 1, 2011No entryNovember 1, 2011Retained earnings 540,000 «- Correct!
Dividends payable - common 290,000 Dividends payable - preferred 250,000 November 15, 2011No EntryDecember 1, 2011Dividends payable - common 290,000 Dividends payable - preferred 250,000 Cash 540,000 «- Correct!
December 2, 2011Retained earnings 580,000 Common stock dividends distributable 29,000 Paid-in capital - excess of par, common 551,000 «- Correct!
December 28, 2011Common stock dividends distributable 29,000 Common stock 29,000 «- Correct!
Part C, Requirement 2:NICKLAUS CORPORATION
Balance Sheet-Shareholders' Equity SectionDecember 31, 2011
Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, issued and outstanding 1,000,000 shares $ 5,000,000 Common stock, $.50 par, authorized 10,000,000 shares, issued 6,058,000 shares, 5,858,000 shares outstanding 3,029,000 Paid-in capital - excess of par 42,551,000 Paid-in capital - share repurchase 50,000 Retained earnings 5,380,000
$ 56,010,000 Less: Treasury stock (100,000 shares at cost) (1,200,000) Total shareholders' equity $ 54,810,000
Correct!
D77
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E102
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Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-12
Part C, Requirement 3:NICKLAUS CORPORATION
Statement of Shareholders' EquityFor the Year Ended December 31, 2011
($ in 000s)
AdditionalPreferred Common Paid-in Retained Treasury
Stock Stock Capital Earnings StockJanuary 2, 2011Issuance of preferred stock 5,000 15,000 Issuance of common stock 3,000 27,000 Purchase of treasury stock (2,400)Sale of treasury stock 50 1,200 Net income 6,500 Common cash dividends (290)Preferred cash dividends (250)Stock dividend 29 551 (580)December 31, 2011 5,000 3,029 42,601 5,380 (1,200)
Correct! Correct! Correct! Correct! Correct!
C124
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TotalShareholders'
Equity
20,000 30,000 (2,400) 1,250 6,500 (290) (250) - 54,810
Correct!
Given Data P18-12:
NICKLAUS CORPORATION
Part ACommon stock authorized 5,000,000 sharesCommon stock par value $ 1.00 Preferred stock authorized 1,000,000 sharesPreferred stock par value $ 5.00 Common stock issued for cash, 1/2/2011 3,000,000 sharesCommon stock average price $ 10.00 per sharePreferred stock issued, 1/2/2011 1,000,000 sharesPreferred stock price per share $ 20.00
Part BStock reacquired, 6/30/2011 200,000 sharesTreasury stock cost per share $ 12.00 Treasury stock reissued, 7/31/2011 50,000 sharesTreasury stock cost per share $ 15.00 Treasury stock reissued, 9/30/2011 50,000 sharesTreasury stock cost per share $ 10.00
Part CCommon stock new par value, 10/1/2011 $ 0.50 Common stock shares outstanding 2,900,000 Common stock dividend declared, 11/1/2011 $ 0.05 per sharePreferred stock dividend declared, 11/1/2011 $ 0.25 per shareDeclared stock dividend payable, 12/2/2011 1%Cost per share at declaration $ 10.00 Additional shares issued 58,000 Net income for 4th quarter $ 2,500,000
Student Name: InstructorClass: McGraw-Hill/Irwin
Problem 18-13
Requirement 1:CHAMPION CHEMICAL CORPORATION
General Journal($ in 000s)
Account Debit CreditTo revalue assets:Retained Earnings 105 Inventory 105 «- Correct!
Land 5 Retained earnings 5 «- Correct!
To eliminate part of deficit against additional paid-in capital:Additional paid-in capital 60 Retained earnings 60 «- Correct!
To eliminate remainder of deficit against common stock:Common stock 240 Retained earnings 240 «- Correct!
Requirement 2:CHAMPION CHEMICAL CORPORATION
Balance SheetAt January 1, 2012
($ in millions)
ASSETSCurrent Assets: Cash $ 20 Receivables 40 Inventory 125 Total Current Assets 185 Land 45 Buildings and equipment (net) 90 Total Assets $ 320
Correct!
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities $ 240 Stockholders' Equity: Common stock 80 Additional paid-in capital - Retained earnings (deficit) -
D12
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E37
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Total Stockholders' Equity 80 Total Liabilities and Stockholders' Equity $ 320
Correct!
Given Data P18-13:
CHAMPION CHEMICAL CORPORATION($ in millions)
Devalue inventory for obsolescence $105 Increase in value of land $5
CHAMPION CHEMICAL CORPORATIONBalance Sheet
At December 31, 2011($ in millions)
Cash $20 Receivables 40 Inventory 230 Land 40 Buildings and equipment (net) 90
$420
Liabilities $240 Common stock (320 million shares at $1 par) 320 Additional paid-in capital 60 Retained earnings (deficit) (200)
$420
