Student Name:
Class:
Debit Credit
Common stock
Paid-in capital – excess of par
Retained Earnings
Cash
November 9, 2018
Retired
Accounted for as treasury stock
Treasury stock
Accounted for as treasury stock
Cash
Paid-in capital – share repurchase
Treasury stock
300,000
300,000
1,500,000
General Journal
Retired
Instructor
Requirement 1:
Account
February 15, 2016
Problem 18-03
NATIONAL SUPPLY
Retired
McGraw-Hill/Irwin
February 17, 2017
Common stock
Paid-in capital – excess of par
Common stock
Accounted for as treasury stock
Treasury stock
Paid-in capital – excess of par
Retained earnings
Cash
Shares Treasury
Retired Stock
5,600,000$ 6,000,000$
NATIONAL SUPPLY
Common stock, $1 par
Paid-in capital:
At January 1, 2016
Shareholders’ Equity
Less: treasury stock, 400,000 shares
Paid-in capital – excess of par
Paid-in capital – share repurchase
Retained earnings
6,000,000$
30,000,000
Given Data P18-03:
($ in millions)
At December 31, 2015
Partial Balance Sheet
NATIONAL SUPPLY
Shares reacquired 2/17/2017
Price per share
Shares sold 11/9/2016
Net income for 2017
Retained earnings
Net income for 2018
Net income for 2016
Shares reacquired 2/15/2016
Price per share
Additional information:
Student Name:
Class:
Requirement 1:
Debit Credit
Investment in Warner bonds
Property dividends payable
no entry
Property dividends payable
Retained earnings
March 13 – date of record
April 5 – payment date
Cash
Paid-in capital – excess of par
Common stock
July 12
Retained earnings
Paid-in capital – excess of par
Common stock
Cash dividends payable
November 15 – date of record
Cash
December 1 – payment date
2018
December 1 – payment date
January 15
November 1 – declaration date
Cash dividends payable
no entry
Cash dividends payable
Retained earnings
84,000,000
300,000
300,000 «- Correct!
88,000,000
88,000,000 «- Correct!
Gain on appreciation of investment
Investment in Warner bonds
Problem 18-05
McGraw-Hill/Irwin
Instructor
Account
2016
November 1 – declaration date
General Journal
BRANCH-RICKIE CORPORATION
2017
March 1 – declaration date
November 1 – declaration date
November 15 – date of record
no entry
Cash dividends payable
Retained earnings
Retained earnings
November 15 – date of record
December 1 – payment date
Cash dividends payable
no entry
Cash dividends payable
Student Name:
Class:
Problem 18-05
McGraw-Hill/Irwin
Instructor
Additional Total
Common Paid-in Retained Shareholders’
Stock Capital Earnings Equity
105,000 630,000 970,000 1,705,000
Correct! Correct! Correct! Correct!
110,000 730,000 1,411,150 2,251,150
Correct! Correct! Correct! Correct!
Cash dividends
Net income
Common stock dividend
Dec. 31, 2017
(1,600) (1,600)
165,000 675,000 1,758,900 2,598,900
Correct! Correct! Correct! Correct!
Dec. 31, 2018
Cash dividends
Net income
55,000 (55,000)
($ in 000s)
For the Years Ended December 31, 2016, 2017 and 2018
Statement of Shareholders’ Equity
BRANCH-RICKIE CORPORATION
Requirement 2:
3 for 2 split effected in the
form of a stock dividend
Jan. 1, 2016
Property dividends
105,000 630,000 1,216,000 1,951,000
Dec. 31, 2016
Cash dividends
Net income
Corporate bond purchase price at March 1, 2015
% Common stock dividend declared and distributed
Net income for year 2016
Net income for year 2017
Net income for year 2018
Market value of common stock, 7/12/2017
Equivalent whole shares
Cash dividend declared on common shares, 11/1/2017
Percentage of 1/15/2018 stock dividend in 3-for-2 split
Cash dividend declared on common shares, 11/1/2018
0.80$ per share
1,600,000$
Given Data P18-05:
BRANCH-RICKIE CORPORATION
Accounts at December 31, 2015:
Cash dividend declared on common shares, 11/1/2016
Corporate bond fair value at March 1, 2017
Additional information:
Common stock, 105 million shares at $1 par
Paid-in capital – excess of par
Retained earnings
Student Name:
Class:
Debit Credit
Retained earnings
Paid-in capital – excess of par
issued and outstanding 3,000,000 shares
Common stock, $1 par, authorized 5,000,000 shares,
30,000,000 «- Correct!
5,000,000$
Part A, Requirement 2:
NICKLAUS CORPORATION
Preferred stock, $5 par, authorized 1,000,000 shares,
Shareholders’ equity
Part A, Requirement 1:
Problem 18-12
McGraw-Hill/Irwin
Instructor
March 31, 2016
Balance Sheet-Shareholders’ Equity Section
General Journal
Cash
January 2, 2016
Account
issued and outstanding 1,000,000 shares
Preferred stock
Cash
January 2, 2016
Paid-in capital – excess of par, common
Paid-in capital – excess of par, preferred
Common stock
Student Name:
Class:
Problem 18-12
McGraw-Hill/Irwin
Instructor
Debit Credit
Retained earnings
Common stock, $1 par, authorized 5,000,000 shares,
Paid-in capital – share repurchase
Paid-in capital – excess of par
issued 3,000,000 shares, 2,900,000 shares outstanding
Less: Treasury stock (200,000 shares at cost)
5,000,000$
General Journal
September 30, 2016
Balance Sheet-Shareholders’ Equity Section
NICKLAUS CORPORATION
June 30, 2016
Account
Part B, Requirement 1:
Part B, Requirement 2:
issued and outstanding 1,000,000 shares
Preferred stock, $5 par, authorized 1,000,000 shares,
NICKLAUS CORPORATION
Shareholders’ equity
July 31, 2016
Cash
Treasury stock
September 30, 2016
Treasury stock
Paid-in capital – share repurchase
Treasury stock
Student Name:
Class:
Problem 18-12
McGraw-Hill/Irwin
Instructor
Debit Credit
December 28, 2016
December 2, 2016
Dividends payable – preferred
Cash
Retained earnings
Common stock dividends distributable
Paid-in capital – excess of par, common
Common stock dividends distributable
Common stock
issued and outstanding 1,000,000 shares
Common stock, $.50 par, authorized 10,000,000 shares,
issued 6,058,000 shares, 5,858,000 shares outstanding
Paid-in capital – excess of par
Paid-in capital – share repurchase
Retained earnings
Less: Treasury stock (100,000 shares at cost)
290,000
General Journal
NICKLAUS CORPORATION
Part C, Requirement 1:
Account
October 1, 2016
November 1, 2016
November 15, 2016
December 1, 2016
No entry
No Entry
Dividends payable – common
Shareholders’ equity
Part C, Requirement 2:
Preferred stock, $5 par, authorized 1,000,000 shares,
December 31, 2016
Balance Sheet-Shareholders’ Equity Section
NICKLAUS CORPORATION
Retained earnings
Dividends payable – common
Dividends payable – preferred
Student Name:
Class:
Problem 18-12
McGraw-Hill/Irwin
Instructor
Additional Total
Preferred Common Paid-in Retained Treasury Shareholders’
Stock Stock Capital Earnings Stock Equity
5,000 15,000 20,000
3,000 27,000 30,000
NICKLAUS CORPORATION
($ in 000s)
For the Year Ended December 31, 2016
Statement of Shareholders’ Equity
Issuance of preferred stock
Issuance of common stock
January 2, 2016
Part C, Requirement 3:
Purchase of treasury stock
Sale of treasury stock
Net income
Common cash dividends
Preferred cash dividends
Stock dividend
200,000 shares
12.00$
50,000 shares
Given Data P18-12:
NICKLAUS CORPORATION
Part C
Treasury stock reissued, 9/30/2016
Treasury stock cost per share
Additional shares issued
Net income for 4th quarter
Common stock new par value, 10/1/2016
Common stock shares outstanding
Common stock dividend declared, 11/1/2016
Preferred stock dividend declared, 11/1/2016
Declared stock dividend payable, 12/2/2016
Cost per share at declaration
Student Name:
Class:
Debit Credit
Receivables
Inventory
Total Current Assets
Buildings and equipment (net)
105
240
240 «- Correct!
20$
Total Stockholders’ Equity
Common stock
Additional paid-in capital
Retained earnings (deficit)
Correct!
240$
Problem 18-13
McGraw-Hill/Irwin
Instructor
Requirement 1:
To eliminate remainder of deficit
Retained Earnings
Account
To revalue assets:
($ in 000s)
General Journal
CHAMPION CHEMICAL CORPORATION
against common stock:
Common stock
Retained earnings
Requirement 2:
ASSETS
($ in millions)
At January 1, 2017
Balance Sheet
CHAMPION CHEMICAL CORPORATION
Current Assets:
Cash
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Stockholders’ Equity:
To eliminate part of deficit against
Inventory
Retained earnings
Additional paid-in capital
Retained earnings
$20
Given Data P18-13:
($ in millions)
At December 31, 2016
Balance Sheet
CHAMPION CHEMICAL CORPORATION
($ in millions)
CHAMPION CHEMICAL CORPORATION
Receivables
Inventory
Retained earnings (deficit)
Buildings and equipment (net)
Liabilities
Common stock (320 million shares at $1 par)
Additional paid-in capital