Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 18, Problem 18.5BE
To determine
Buyback of Shares
Retire stock:
Buy back of shares from the shareholders by paying cash and obtaining the status of “authorized but unissued shares are known as retired shares.
To determine: The amount by which the paid in capital will decrease, if S Storage reacquires (retires) 1 million shares at $19 per share.
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Testbank Multiple Choice Question 103
Sunland Company has $3110000 of short-term debt it expects to retire with proceeds from the sale of 89000 shares of common stock. There is no contractual agreement to retire the debt with the
stock sale proceeds. If the stock is sold for $25 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from
current liabilities?
O $ 2225000.
O $885000.
O $ 3110000.
O $0, No contractual agreement to retire the debt with stock proceeds.
Problem 18-5 (Static) Shareholders' equity transactions; statement of shareholders' equity [LO18-6,18-
7,18-8]
Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2021=2023. At
December 31, 2020, the corporation's accounts included:
57:28
Common stock, 105 million shares at $1 par
Paid-in capital-excess of par
Retained earnings
sin
thousands)
$105,000
630,000
970,000
at
nces
a. November 1, 2021, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to
shareholders of record November 15, to be paid December
b On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that
Branch Rickie was holding as an investment. The bonds had a fair value of $1.6 million, but were purchased two years previously for
$1.3 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The…
Exercise 18-10 (Static) Retirement of shares [LO18-5]
Borner Communications' articles of incorporation authorized the issuance of 130 million common shares. The transactions described
below.effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following:
Shareholders' Equity
Common stock, 100 million shares at $1 par
Paid-in capital excess of par
Retained earnings
($ in millions)
$100
300
210
Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares).
record the appropriate journal entry for each of the following transactions: (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).)
1. On January 7, 2021, Borner reacquired 2 million shares at $5 per share.
2. On August 23, 2021, Borner reacquired 4 million…
Chapter 18 Solutions
Intermediate Accounting, 10 Ed
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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