Question
During its first year of operation, Oakridge Corporation issued 180 million shares of $1 par common stock at a price of $7 per share. At
During its first year of operation, Oakridge Corporation issued 180 million shares of $1 par common stock at a price of $7 per share. At the end of that first year, the balance sheet of Oakridge Company included the following shareholders' equity section:
Oakridge Company Shareholder Equity
December 31, 2021
| ($ in millions) | ||||
Common stock ($1 par, authorized 200 million shares, issued and outstanding 180 million shares) |
| $ | 180 |
|
|
Paid-in capitalexcess of par |
|
| 1,080 |
|
|
Retained earnings |
|
| 560 |
|
|
Total shareholders' equity |
| $ | 1,820 |
|
|
On January 1, 2022, Oakridge Co. purchased and retired 2 million shares of its common stock for $18 million ($9 per share). Using the table below, provide the new balances for the shareholders equity accounts for immediately after retirement of the shares on Jan. 1, 2022.
Oakridge Company Shareholder Equity
January 1, 2022
| ($ in millions) | ||||
Common stock ($1 par, authorized 200 million shares, issued and outstanding 178 million shares) |
|
|
|
|
|
Paid-in capitalexcess of par |
|
|
|
|
|
Retained earnings |
|
|
|
|
|
Total shareholders' equity |
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started