Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Using the following information, complete the statement of shareholders' equity. Total Retained earnings Common AOCI stocks Treasury stocks Balance, Dec. 31, 2018 $193,000

image text in transcribed

2. Using the following information, complete the statement of shareholders' equity. Total Retained earnings Common AOCI stocks Treasury stocks Balance, Dec. 31, 2018 $193,000 Net Income Cash dividends paid Employ compensation & stock options Repurchase of common stock Other comprehensive income Balance, Dec. 31, 2019 Common stocks, $1.50 par value and $2.50 in excess-of-par per share for 4,000 million shares issued and no additional shares issued. Cash dividends were $13,000 million during 2019. > Accumulated Other Comprehensive Income (loss) were ($25,000 million) for 2019 & ($22,000 million) for 2018, a $3,000 more loss in 2019. Net income for 2019 was $25,000, added to the retained earnings, so that the retained Earnings balance was $232,000 million for 2018 & $242,000 for 2019. Treasury stocks of $5,500 was used for the employ compensation & stock options during 2019, reducing the treasury stocks. In exchange for the shares, employees paid cash of $3,900 only as the shares were offered at a lowered price so that the $1,600 million difference reduced retained earnings. During 2019, $6,500 million of shares were repurchased so that the balance for the treasury stocks, at cost, is $33,000 million for 2018 & $34,000 million for 2019. The $1,000 million increase is due to (a) +$5,500 and -$6,500.

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

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

5th Edition

1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615

More Books

Students also viewed these Accounting questions