Exercise 15-7

Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions.

1. Purchased 5,000 treasury shares at $45 per share.

2. Resold 2,000 of the treasury shares at $49 per share.

3. Resold 500 of the treasury shares at $40 per share.

Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method.

Exercise 15-10

For a recent 2-year period, the balance sheet of Splish Company showed the following stockholders' equity data at December 31 (in millions).

Exercise 15-12

HeadlandCorporation has12.40million shares of common stock issued and outstanding. On June 1, the board of directors voted an74cents per share cash dividend to stockholders of record as of June 14, payable June 30.

Exercise 15-7 Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1 . Purchased 5,000 treasury shares at $45 per share. 2 . Resold 2,000 of the treasury shares at $49 per share. 3 . Resold 500 of the treasury shares at $40 per share. Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method. # Assets Liabilities Stockholders' Equity Paid-in Capital Retained Earnings Net Income 1. 2. 3. Exercise 15-10 For a recent 2-year period, the balance sheet of Splish Company showed the following stockholders' equity data at December 31 (in millions). 2017 Additional paid-in capital 2016 $ 900 $ 810 663 654 Retained earnings 7,200 5,310 Treasury stock 1,764 896 $6,999 $5,878 Common stock shares issued 221 218 Common stock shares authorized 500 500 36 28 Common stock Total stockholders' equity Treasury stock shares (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) Par value of common stock $ (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? December 31, 2017 December 31, 2016 Cost per share of Treasury stock $ $ (b) Prepare the stockholders' equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) Splish Company Balance Sheet (in millions of dollars) (Partial) $ : $ Exercise 15-12 Headland Corporation has 12.40 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 74 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit How would the entries differ if the dividend were a liquidating dividend? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit