Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Equity Common stock with $.01 par value 80 (9,000 million shares authorized, 8,019 million shares issued) Additional paid in capital 15,557 Earnings reinvested 421,341 Accumulated

Equity

Common stock with $.01 par value

80

(9,000 million shares authorized, 8,019 million shares issued)

Additional paid in capital

15,557

Earnings reinvested

421,341

Accumulated other comprehensive income

(19,493)

Common stock held in treasury

(3,785 million shares in 2019)

(225,835)

ExxonMobil share of equity

191,650

Above is the stockholders equity section of EXs balance sheet at the end of 2019 in millions. The following happened in 2020 (everything in millions):

Net income of $19,710

Total other comprehensive income for 2020 is $3,910.

April - Compensation associated with stock options granted in 2017 were earned. At the beginning of 2017 6 million options were granted with a fair value of $5 each to be vested over 3 years of employment (not included in shares outstanding).

Stock was repurchased in the open market on February 1 and September 1. Both times EX spent exactly 7,000. The share price on Feb 1 was $154 and on Sep 1 was $168.

Stock options granted in 2013 (already earned) were exercised on July 1 to purchase 400 million shares at $125 each. The stock released from the treasury to cover these shares was originally purchased by EX for $105 per share.

A stock split that is accounted for as a 100% stock dividend was issued on December 1, 2020 when the market price of the shares was $185.

Dividends were declared and paid on December 31, 2020 at a rate of $3.40 per share.

Required:

  1. Give all the journal entries needed in 2019 to record the changes in equity listed.
  2. Prepare a statement of changes in stockholders equity for 2019 for EX.
  3. Prepare the equity section of the balance sheet for EX at the end of 2019.

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_2

Step: 3

blur-text-image_3

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

Cases In Healthcare Finance

Authors: Louis C. Gapenski

3rd Edition

1567932444, 9781567932447

More Books

Students also viewed these Finance questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago