Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Journalize Mountain's transactions in pa -X trans i Data Table $ 27 Common stock, $1.00 par value per share, 27 million shares issued Paid-in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1. Journalize Mountain's transactions in pa -X trans i Data Table $ 27 Common stock, $1.00 par value per share, 27 million shares issued Paid-in capital in excess of par value Retained earnings Treasury stock, at cost 95 270 (70) Total stockholders' equity $ 322 eas Print Done i More Info a. Net income, $445 million b. Issuance of 4 million shares of common stock for $14.00 per share c. Purchase of 6 million shares of treasury stock for $66 million d. Sold 1 million of the treasury shares purchased in part c for $15 million e. Declaration and payment of cash dividends of $37 million At December 31, 2018, Mountain Corporation reported the stockholders' equity accounts shown here (with dollar amounts in millions, except per-share amounts). (Click the icon to view the data.) Mountain's 2019 transactions included Click the icon to view the transactions.) Requirements 1. Journalize Mountain's transactions in parts b, c, d, and e. Explanations are not required. 2. What was the overall effect of these transactions (parts o e) on Mountain's stockholders' equity? Requirement 1. Journalize Mountain's transactions in b, c, d, and e Explanations are not required. (Enter amounts in millions as provided to you in the problem statement. Record debits first, then credits. Exclude explanations from any Journal entries.) b. Iskusnico of 4 million shares of common stock for $14.00 per share Journal Entry Debit Credit Cash Common Stock Pald-in Capital In Excess of Par Common Dato Accounts b. C. Purchase of 6 million shares of treasury stock for $66 million. Journal Entry Accounts Date Debit Credit C. Treasury Stock Cash d. Sold 1 million of the treasury shares purchased in partc for $15 million Journal Entry Date Accounts Debit Cash Treasury Stock Pald-in Capital from Treasury Stock d. Credit e 1. Declaration and nu 2. e 1. Declaration and payment of cash dividends of $37 million. Journalize the dedaration of the dividend only. You will prepare the journal entry for the payment of the dividend next. Journal Entry Date Accounts Debit Credit e 1. Retained Earnings Dividends Payable e 2. Declaration and payment of cash dividends of $27 e 2. Declaration and payment of cash dividends of $37 million. Now joumalize the payment of the cash dividends. Date Journal Entry Accounts e 2 Dividends Payable Cash Debit Credit Requirement 2. What was the overall effect of these transactions (parts a through e) on Mountain's stockholders' equity? The overall net effect on stockholders' equity is a not increase of $ Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Acca Paper 3.1 Audit And Assurance

Authors: N/a

1st Edition

075172680X, 978-0751726800

More Books

Students also viewed these Accounting questions