Question

At December 31, 2014, Harelik Corporation reported the stockholders’ equity accounts shown here (with dollar amounts in millions, except per-share amounts).
Common stock $1.50 par value per share,
2,400 million shares issued................ $ 3,600
Paid-in capital in excess of par value..... 7,200
Retained earnings.................................. 1,490
Treasury stock, at cost.......................... (85)
Total stockholders’ equity................. $12,205
Harelik’s 2015 transactions included
a. Net income, $380 million
b. Issuance of 18 million shares of common stock for $12.00 per share
c. Purchase of 8 million shares of treasury stock for $120 million
d. Sold 5 million of the treasury shares purchased in part c for $80 million
e. Declaration and payment of cash dividends of $24 million

Requirements
1. Journalize Harelik’s transactions in parts b, c, d, and e. Explanations are not required.
2. What was the overall effect of these transactions (parts a through e) on Harelik’s stockholders’ equity?



$1.99
Sales1
Views153
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000