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In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury

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In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2017. UMC's balance sheet reported the following shareholders' equity ($ in millions) 195 Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (4 million shares at cost) Total shareholders' equity (33) $2.133 Required: a. Identify the type of accounting change this decision represents b. Prepare the journal entry to effect the reclassification of treasury shares as retired shares Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Identify the type of accounting change this decision represents. This is change in reporting entry * Required A Required B > In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2017. UMC's balance sheet reported the following shareholders' equity Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (4 million shares at cost) Total shareholders' equity ($ in millions) $ 195 975 996 (33) $2,133 Required: a. Identify the type of accounting change this decision represents. b. Prepare the journal entry to effect the reclassification of treasury shares as retired shares. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry to effect the reclassification of treasury shares as retired shares. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (i.e. 10,000,000 should be entered as 10).) Event Debit Credit General Journal Common stock Retained earnings Treasury stock 29 X 33

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