Lets journalize. Only prepare journal entries for the most current year.

3. Start with the Capital Stock and Capital in Excess of Par Value columns on the Consolidated Statement of Equity for Ford Motor Company. We see that Capital in Excess of Part increased $163 mill, but the par value account did not change. We can also see on the cash flow statement that no stock was issued.

Since the line item says that the increase to the account includes share-based compensation impacts, we will assume that the entire amount is for share-based compensation. The entry would be similar to Illustration 19-3 and 19-3a. Show the journal entry here. (6 points)

Date	Accounts	Debit	Credit

4. Move to the Retained Earnings Column. Show the journal entry to close out net income to Retained Earnings. (6 points)

Date	Accounts	Debit	Credit

5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915 on the statement of equity. The amount actually paid on the cash flow statement is $2,905. Show journal entry here: (6 points)

Date	Accounts	Debit	Credit

Notewe will ignore the $1mil reduction in Retained Earnings on the Treasury Stock/other line. We arent given enough information to re-create this journal entry.

7. We can move to the Treasury Stock Column next. We see that treasury stock was purchased. Notice that the change in the Treasury Stock account equals the cash received from sale of common stock on the cash flow statement. Show the journal entry for the purchase of treasury stock. (6 points)

Date	Accounts	Debit	Credit

8. Move on to the Accumulated Other Comprehensive Income/ (Loss) column. The total change is $407 mil. Remember there are four items that are charged to Other Comprehensive Income. To find the break-down of the $407 mil go to the Consolidated Statement of Comprehensive Income.

Ill do the foreign currency translation adjustment:

Date	Accounts	Debit	Credit
	Other comprehensive lossforeign currency	523
	Payables(accounts payable)		523

You do the marketable securities adjustment. (4 points)

Date	Accounts	Debit	Credit

Ill take the derivatives adjustment as well, although we are just 2 weeks away from learning this. I will make the adjustment to marketable securities

Date	Accounts	Debit	Credit
	Marketable Securities	183
	Other comprehensive incomeDerivatives		183

Lastly, we have the pension adjustment. The pension liability is included under Other liabilities and deferred revenue. (4 points)

Date	Accounts	Debit	Credit

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EQUITY (in millions) Equity Attributable to Ford Motor Company Equity Attributable to Non- Accumulated Other . in Excess of Par Value of Stock Retained Comprehensive Income/(Loss) (Note 21) apital Stock Earnings/(Accumulated Deficit) Treasury Stock Total controlling Interests Total Equity Balance at December 31, 2015 41 21,421 14,980 (6,257) (977) 29,208 S 15 S 29,223 4,589 Net income 4,589 11 4,600 (756) Other comprehensive income/(loss), net of tax Common stock issued (including share-based compensation impacts) (756) (1) (757) 209 209 209 Treasury stock/other (145) (145) (3) (148) (3,376) Cash dividends declared (a) (3,376) (5) (3,381) 29,746 Balance at December 31, 2016 S 41 S 21,630 16,193 (7,013) (1,122) 29,729 S 17 S 29,746 Balance at December 31, 2016 41 21,630 16,193 (7,013) (1,122) S 29,729 17 Adoption of accounting standards 6 566 572 572 Net income 7,731 7,731 26 7,757 Other comprehensive income/(loss), net of tax 54 54 (2) 52 Common stock issued (including share-based compensation impacts) 207 207 207 Treasury stock/other (131) (131) (2) (133) Cash dividends declared (a) (2,584) (2,584) (11) (2,595) Balance at December 31, 2017 41 21,843 21,906 (6,959) S (1,253) S 35,578 S 28 S 35,606 (6,959) $ $ $ Balance at December 31, 2017 41 21,843 21,906 (1,253) 35,578 28 35,606 3,677 Net income 3,677 18 3,695 Other comprehensive income/(loss), net of tax (407) (407) (407) Common stock issued (including share-based compensation impacts) 163 163 163 Treasury stock/other (164) (164) (164) ividend and dividend equivalents declared (a) (2,915) (2,915) (12) (2,927) (7,366) (1,417) 35.932 Balance at December 31, 2018 41 22,006 22,668 34 35,966 (a) We declared dividends per share of Common and Class B Stock of S0.85, $0.65, and S0.73 per share in 2016, 2017, and 2018, respectively. The accompanying notes are part of the consolidated financial statements. FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EQUITY (in millions) Equity Attributable to Ford Motor Company Equity Attributable to Non- Accumulated Other . in Excess of Par Value of Stock Retained Comprehensive Income/(Loss) (Note 21) apital Stock Earnings/(Accumulated Deficit) Treasury Stock Total controlling Interests Total Equity Balance at December 31, 2015 41 21,421 14,980 (6,257) (977) 29,208 S 15 S 29,223 4,589 Net income 4,589 11 4,600 (756) Other comprehensive income/(loss), net of tax Common stock issued (including share-based compensation impacts) (756) (1) (757) 209 209 209 Treasury stock/other (145) (145) (3) (148) (3,376) Cash dividends declared (a) (3,376) (5) (3,381) 29,746 Balance at December 31, 2016 S 41 S 21,630 16,193 (7,013) (1,122) 29,729 S 17 S 29,746 Balance at December 31, 2016 41 21,630 16,193 (7,013) (1,122) S 29,729 17 Adoption of accounting standards 6 566 572 572 Net income 7,731 7,731 26 7,757 Other comprehensive income/(loss), net of tax 54 54 (2) 52 Common stock issued (including share-based compensation impacts) 207 207 207 Treasury stock/other (131) (131) (2) (133) Cash dividends declared (a) (2,584) (2,584) (11) (2,595) Balance at December 31, 2017 41 21,843 21,906 (6,959) S (1,253) S 35,578 S 28 S 35,606 (6,959) $ $ $ Balance at December 31, 2017 41 21,843 21,906 (1,253) 35,578 28 35,606 3,677 Net income 3,677 18 3,695 Other comprehensive income/(loss), net of tax (407) (407) (407) Common stock issued (including share-based compensation impacts) 163 163 163 Treasury stock/other (164) (164) (164) ividend and dividend equivalents declared (a) (2,915) (2,915) (12) (2,927) (7,366) (1,417) 35.932 Balance at December 31, 2018 41 22,006 22,668 34 35,966 (a) We declared dividends per share of Common and Class B Stock of S0.85, $0.65, and S0.73 per share in 2016, 2017, and 2018, respectively. The accompanying notes are part of the consolidated financial statements