Question 8 Not complete Marked out of 10.00 Flag question Accounting for Large Stock Dividend and Stock Split Watts Corporation has 50,000 shares of $8 par value common stock outstanding and retained earnings of $790,000. The company declares a 100% stock dividend. The market price at the declaration is $15 per share. a. Prepare the general journal entry for the stock dividend. If no journal entry is required, select "No entry" for your answers. General Journal Description Credit Debit 0 0 0 b. Assume that the company splits its stock two shares for one share and reduces the par value from $8 to $4 rather than declaring a 100% stock dividend. How does the accounting for the stock split differ from the accounting for the 100% stock dividend? Prepare the journal entry for the stock split. If no journal entry is required, select "No entry" for your answers. General Journal Description Credit Debit 0 0 0 0 Check Question 9 Not complete Marked out of 20.00 p Flag question 253 244 $4.04 Analyzing and Interpreting Stockholders' Equity and EPS Following is the stockholders' equity section of the balance sheet for The Procter & Gamble company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information. $ millions except per share amounts 2014 2013 Net earnings attributable to Procter & Gamble shareholders $11,643 $11,312 Common dividends 6,658 6,275 Preferred dividends Basic net earnings per common share $4.19 Diluted net earnings per common share $3.86 Shareholders' equlty: Convertible class A preferred stock, stated value $1 per share $1,111 $1,137 Common stock, stated value $1 per share 4,009 4,009 Additional pald.in capital 63,911 63,538 Treasury stock, at cost (shares held: 2014--1,298.4, 2013--1,266.9) (75,805) (71,966) Retained earnings 84,990 80,197 Accumulated other comprehensive Income/(loss) (7,662) (7,499) (1,340) (1,352) Shareholders' equity attributable to Procter & Gamble shareholders $69,214 $68,064 $4.01 Other a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014. Hint: To compute the 2014 Average, use the equation for Basic EPS and solve for the denominator (average common shares outstanding). Do not take an average of 2013 and 2014 shares outstanding. Note: Round to one decimal place. 2014 2013 2014 Average 0 million 0 million 0 million b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places. 2014 $ 2013 $ 0 0 c. In 2014, preferred shareholders elected to convert 3.2 million shares of preferred stock ($26 million book value) into common stock. Rather than issue new shares, the company granted 3.2 million shares held in treasury stock to the preferred shareholders, with a total cost of $22 million. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2013 determined in b.) Enter answers in millions. Round to the nearest million. Description Credit Debit 0 0 Additional paid.in capital 0 0 0 0 d. Calculate P&G's return on common equity (ROCE) for fiscal 2014. Round to one decimal place. 2014 0 % Check
