15-19Solutions
15.27 e. continued.
Assets = Liabilities +
Shareholders’
Equity (Class.)
IncSt
RE
(4b) Securities Available for Sale ……………………… 2,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
OCI
f. The realized gain appears in the income statement and the
15.28 (Shea Company; reconstructing transactions involving shareholder
s’
equity.) (amounts in US$)
a. $100,000 par value/$5 per share = 20,000
shares. b. $33,600/1,200 = $28 per share.
c. 2,000 – 1,200 = 800 shares.
d. If the Additional Paid-In Capital is $509,600, then $500,000 [=
20,000
Solutions15-20
15.28 d. continued.
e. (1) Cash………………………………………………………… 600,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Treasury Shares ……………………………………….. 56,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-21Solutions
15.28 e. continued.
(4a) Cash
…..…………………………….…………………
……
12,000
Realized Loss on Sale of Securities
for
Securities Available for Sale
for
Securities Available for Sale
2013: zero compensation because all benefits occur after the
granting of the stock option.
$
6
4
,98
0
Solutions15-22
15.30 (Pramble Company; accounting for stock options.) (amounts
in US$) Compensation expense reduces net income each
year as follows:
15.31 (Microtel Corporation; reconstructing transactions afecting
shareholders’
equity.) (amounts in millions of US$)
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Common Stock and Additional Paid-In Cap
i
ta
l
… 6,162
Assets = Liabilities +
Shareholders’
Equity (Class.)
–27,374 –6,162 ContriCap
–21,212 RE
(3) Compensation Expe
ns
e …………………………………….. 889
Assets = Liabilities +
Shareholders’
Equity (Class.)
–889
IncSt
RE
+889 ContriCap
15-23Solutions
15.31 continued.
Assets = Liabilities +
Shareholders’
Equity (Class.)
(5) Retained Earnings……………………………………………. 3,837
Assets = Liabilities +
Shareholders’
Equity (Class.)
32
6
Assets = Liabilities +
Shareholders’
Equity (Class.)
OCI
(7) Derivative
Securi
t
i
e
s
………………………………………… 14
Net Unrealized Gains and Losses on
Solutions15-24
15.32 (Sirens, Inc.; journal entries for changes in shareholders’ equity.)
(amounts in thousands of US$)
(1) Ca
sh
….………………………………………………………….…
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Ca
sh
….………………………………………………………….…
Assets = Liabilities +
Shareholders’
Equity (Class.)
(3) Compensation Expe
ns
e ….………………………………….
52,683
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-25Solutions
15.32 continued.
Assets = Liabilities +
Shareholders’
Equity (Class.)
(5) Additional Paid-In Cap
i
ta
l
….……………………………. 5
Common Stock—Par Va
lu
e ……………………………
5
Assets = Liabilities +
Shareholders’
Equity (Class.)
–5 ContriCap
+5 ContriCap
(6) Convertible Notes ……………………………………………. 3,184
To record conversion of notes into common
stock.
Solutions15-26
15.33 (Busch Corporation; journal entries for changes in
(2) Compensation Expe
ns
e …………………………………….. 136.3
(3) Revenues, Gains, Expenses, and Losses……………… 2,115.3
Retained Earnings…………………………………………
2,1
15.3
Assets = Liabilities +
Shareholders’
Equity (Class.)
–2,115.3
IncSt
RE
+2,115.3 RE
To close revenue and expense accounts to
retained earnings.
d. If the Additional Paid-In Capital is $509,600, then $500,000 [=
20,000
Solutions15-20
15.28 d. continued.
e. (1) Cash………………………………………………………… 600,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Treasury Shares ……………………………………….. 56,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-21Solutions
15.28 e. continued.
(4a) Cash
…..…………………………….…………………
……
12,000
Realized Loss on Sale of Securities
2013: zero compensation because all benefits occur after the
granting of the stock option.
$
6
4
,98
0
Solutions15-22
15.30 (Pramble Company; accounting for stock options.) (amounts
in US$) Compensation expense reduces net income each
year as follows:
15.31 (Microtel Corporation; reconstructing transactions afecting
shareholders’
equity.) (amounts in millions of US$)
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Common Stock and Additional Paid-In Cap
i
ta
l
… 6,162
Assets = Liabilities +
Shareholders’
Equity (Class.)
–27,374 –6,162 ContriCap
–21,212 RE
(3) Compensation Expe
ns
e …………………………………….. 889
Assets = Liabilities +
Shareholders’
Equity (Class.)
–889
IncSt
RE
+889 ContriCap
15-23Solutions
15.31 continued.
Assets = Liabilities +
Shareholders’
Equity (Class.)
(5) Retained Earnings……………………………………………. 3,837
Assets = Liabilities +
Shareholders’
Equity (Class.)
32
6
Assets = Liabilities +
Shareholders’
Equity (Class.)
OCI
(7) Derivative
Securi
t
i
e
s
………………………………………… 14
Net Unrealized Gains and Losses on
Solutions15-24
15.32 (Sirens, Inc.; journal entries for changes in shareholders’ equity.)
(amounts in thousands of US$)
(1) Ca
sh
….………………………………………………………….…
Assets = Liabilities +
Shareholders’
Equity (Class.)
(2) Ca
sh
….………………………………………………………….…
Assets = Liabilities +
Shareholders’
Equity (Class.)
(3) Compensation Expe
ns
e ….………………………………….
52,683
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-25Solutions
15.32 continued.
Assets = Liabilities +
Shareholders’
Equity (Class.)
(5) Additional Paid-In Cap
i
ta
l
….……………………………. 5
Common Stock—Par Va
lu
e ……………………………
5
Assets = Liabilities +
Shareholders’
Equity (Class.)
–5 ContriCap
+5 ContriCap
(6) Convertible Notes ……………………………………………. 3,184
To record conversion of notes into common
stock.
Solutions15-26
15.33 (Busch Corporation; journal entries for changes in
(2) Compensation Expe
ns
e …………………………………….. 136.3
(3) Revenues, Gains, Expenses, and Losses……………… 2,115.3
Retained Earnings…………………………………………
2,1
15.3
Assets = Liabilities +
Shareholders’
Equity (Class.)
–2,115.3
IncSt
RE
+2,115.3 RE
To close revenue and expense accounts to
retained earnings.