At December 31, 2010, Eastern Corporation reported the stockholders equity accounts shown here (with dollar amounts in

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At December 31, 2010, Eastern 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,
1,700 million shares issued................ $ 2,550
Capital in excess of par value ................ 7,650
Retained earnings.................................. 260
Treasury stock, at cost.......................... (10)
Total stockholders equity................. $10,450
Eastern’s 2011 transactions included the following:
a. Net income, $447 million.
b. Issuance of 9 million shares of common stock for $12.50 per share.
c. Purchase of 3 million shares of treasury stock for $15 million.
d. Declaration and payment of cash dividends of $34 million.

Requirement
1. Journalize Eastern’s transactions in b, c, and d. Explanations are not required.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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,...
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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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