Unilever Group reports the following equity information for the years ended December 31, 2014 and 2013 (Euros

Question:

Unilever Group reports the following equity information for the years ended December 31, 2014 and 2013 (Euros in millions).

December 31_________________ 2014 ____________ 2013

Share capital . . . . . . . . . . . . . . . . . € 484 . . . . . . . . . . . . € 484

Share premium . . . . . . . . . . . . . . . . 145 . . . . . . . . . . . . . . 138

Other reserves . . . . . . . . . . . . . . . (7,538) . . . . . . . . . . .(6,746)

Retained profit . . . . . . . . . . . . . . 20,560 . . . . . . . . . . . 20,468

Shareholders' equity . . . . . . . . . .€13,651 . . . . . . . . . .€14,344

1. Match each of the three account titles-share capital, share premium, and retained profit-with the usual account title applied under U.S. GAAP from the following options:

Paid-in capital in excess of par value, common stock

Retained earnings

Common stock, par value

2. Prepare Unilever's journal entry, using its account titles, to record the issuance of capital stock assuming that its entire par value stock was issued on December 31, 2013, for cash.

3. What were Unilever's 2014 dividends assuming that only dividends and income impacted retained profit for 2014 and that its 2014 income totaled €5,092?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...