Alternate Exercises and Problems 18–1
Chapter 18 Shareholders’ Equity
EXERCISES
Exercise 18-1
February 13
Cash (60 million shares x $10 per share) ………………………. 600
Exercise 18-2
1. January 8, 2016
($ in millions)
Common stock (8 million shares x $1 par) ……………………………. 8
2. August 24, 2016
Common stock (16 million shares x $1 par) ………………………….. 16
3. July 26, 2017
Exercise 18-3
Requirement 1
a. February 20 – declaration date
Investment in Brown International stock ……………………. 15,000
Gain on appreciation of investment ($500,000 – $485,000) 15,000
18–4 Intermediate Accounting, 8/e
Exercise 18-3 (concluded)
d. December 2 – declaration date
Retained earnings …………………………………………………….. 7,600
Requirement 2
Paid-in capital:
PROBLEMS
Problem 18-1
Requirement 1
a. March 6, 2016
($ in millions)
Retirement Treasury Stock
Problem 18-1 (concluded)
Requirement 2
Shareholders’ Equity $ in millions
Retired Treasury
Stock Stock
Paid-in capital:
Common stock, at $1 par, ………………………………………. $ 79 $ 80
Alternate Exercises and Problems 18–7
Problem 18-2
Requirement 1
a. November 2 – declaration date
Retained earnings ……………………………………………….. 252,000,000
March 14– date of record
no entry
18–8 Intermediate Accounting, 8/e
Problem 18-2 (continued)
d. November 2 – declaration date
Alternate Exercises and Problems 18–9
Problem 18-2 (concluded)
Requirement 2
BLT Corporation
Statement of Shareholders’ Equity
For the Years Ended Dec. 31, 2016, 2017, and 2018 ($ in 000s)
Common
Stock
Additional
Paid-in Capital
Retained
Earnings
Total
Shareholders’
Equity
Jan. 1, 2016
Dec. 31, 2016
Dec. 31, 2017
Dec. 31, 2018