Analyzing and Interpreting Stockholders Equity and EPS Following is the stockholders equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information.

c. In 2014, preferred shareholders elected to convert 41 million shares of preferred stock into common stock. Rather than issue new shares, the company granted 41 million shares held in treasury stock to the preferred shareholders. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2013 determined in b.) Enter answers in millions. Round to the nearest million.

$ millions except per share amounts 2014 2013 Net earnings attributable to Procter & Gamble shareholders $11,156 $11,797 Common dividends 5,883 5,534 Preferred dividends 256 233 Basic net earnings per common share $3.82 $4.12 Diluted net earnings per common share $3.66 $3.93 Shareholders' equity: Convertible class A preferred stock, stated value $1 per share $1,195 $1,234 Common stock, stated value $1 per share 4,008 4,008 Additional paid-in capital 63,181 62,405 Treasury stock, at cost (shares held: 2014--1261.2; 2013--1243) (69,604) (67,278) Retained earnings 75,349 70,682 Accumulated other comprehensive income/loss) (9,333) (2,054) Other (761) (996) Shareholders' equity attributable to Procter & Gamble shareholders $64,035 $68,001 a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014. Hint: To compute the 2014 Average, use the equation for Basic EPS and solve for the denominator (average common shares outstanding). Do not take an average of 2013 and 2014 shares outstanding. Note: Round to one decimal place. 2014 million 2013 million 2014 Average million b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places. 2014 $ 2013 $ Description Debit Credit Additional paid-in capital d. Calculate P&G's return on common equity (ROCE) for fiscal 2014. Round to one decimal place. 2014 %