Anаlyzing аnd Interpreting Stоckhоlders’ Equity Fоllowing is the stockholders’ equity section of the bаlance 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) 2020 2019 Net earnings attributable to Procter & Gamble shareholders $13,027 $3,897 Common dividends 7,551 7,256 Preferred dividends 263 263 Basic net earnings per common share $5.13 $1.45 Diluted net earnings per common share $4.96 $1.43 Shareholders’ equity: Convertible class A preferred stock, stated value $1 per share (600 shares authorized) $897 $928 Nonvoting class B preferred stock, stated value $1 per share (200 shares authorized) — — Common stock, stated value $1 per share (10,000 shares authorized) shares issued: 2020—4,009.2; 2019—4,009.2 4,009 4,009 Additional paid-in capital 64,194 63,827 Reserve for ESOP debt retirement (1,080) (1,146) Accumulated other comprehensive income (loss) (16,165) (14,936) Treasury stock, at cost (shares held: 2020—1,529.5, 2019—1,504.5) (105,573) (100,406) Retained earnings 100,239 94,918 Shareholders’ equity attributable to Procter & Gamble shareholders $46,521 $47,194 In 2020, preferred shareholders elected to convert 3.74 million shares of preferred stock ( $31 million book value) into common stock. Rather than issue new shares, the company granted to the preferred shareholders 3.74 million common shares held in treasury stock with a total cost of $26 million. Prepare a journal entry to illustrate how the transaction would be recorded. NOTE: Enter amounts in millions. Account Debit Credit {#1} {#2} {#3}
Anаlyzing, Identifying, аnd Explаining the Effects оf a Stоck Split On March 1 оf the current year, Xie Company has 360,000 shares of $20 par value common stock that are issued and outstanding. Its balance sheet shows the following account balances relating to common stock. Common stock $7,200,000 Paid-in capital in excess of par value 3,060,000 On March 2, Xie Company splits its common stock 2-for-1 and reduces the par value to $10 per share. Required a. How many shares of common stock are issued and outstanding immediately after the stock split?{#1} b. What is the dollar balance in its common stock account immediately after the stock split? ${#2} c. What is the dollar balance in its paid-in capital in excess of par value account immediately after the stock split? ${#3}
Anаlyzing аnd Distributing Cаsh Dividends tо Preferred and Cоmmоn Stocks Moser Company began business on March 1, 2021. At that time, it issued 40,000 shares of $60 par value, 5% cumulative preferred stock, and 200,000 shares of $5 par value common stock. Through the end of 2023, there has been no change in the number of preferred and common shares outstanding. a. Assume that Moser declared and paid cash dividends of $0 in 2021, $270,000 in 2022, and $400,000 in 2023. Compute the total cash dividends and the dividends per share paid to each class of stock in 2021, 2022, and 2023. Round the per share amount to two decimal places. YearClassTotalPer Share 2021Preferred ${#1} ${#2} 2021 Common ${#3} ${#4} 2022 Preferred ${#5} ${#6} 2022 Common ${#7} ${#8} 2023 Preferred ${#9} ${#10} 2023 Common ${#11} ${#12} b. Assume that Moser declared and paid cash dividends of $0 in 2021, $120,000 in 2022, and $200,000 in 2023. Compute the total cash dividends and the dividends per share paid to each class of stock in 2021, 2022, and 2023. Round the per share amount to two decimal places. Year Class Total Per Share 2021 Preferred {#13} {#14} 2021 Common {#15} {#16} 2022 Preferred {#17} {#18} 2022 Common {#19} {#20} 2023 Preferred {#21} {#22} 2023 Common {#23} {#24}