Following is the stockholders' equity section from the Campbell Soup Company balance sheet. (Note: Campbell's uses shareowners' equity in lieu of the more common title of stockholders' equity.)

Campbell Soup Company also reports the following statement of stockholders' equity.

a. Show the computation, using par value and share numbers, to arrive at the \(\$ 12\) million in the common stock account.

b. At what average price were the Campbell Soup shares issued?

c. Reconcile the beginning and ending balances of retained earnings.

d. Campbell Soup retired treasury stock during the year. Explain why a company chooses to retire treasury stock. What effect did the retirement of treasury stock have on the common stock account, treasury stock account and retained earnings this year?

e. Campbell Soup reports an increase in stockholders' equity relating to the exercise of stock options (titled "Treasury stock issued under management incentive and stock option plans"). This transaction involves the purchase of common stock by employees at a preset price. Describe how this set of transactions affects stockholders' equity.

f. Describe the transaction relating to the "Treasury stock purchased" line in the statement of stockholders' equity.

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Shareowners' Equity (millions, except per share amounts) Preferred stock: authorized 40 shares; none issued ... Capital stock, $.0375 par value; authorized 560 shares; issued 323 shares as of July 28, 2013, and 542 as of July 29, 2012... Additional paid-in capital.. Earnings retained in the business Capital stock in treasury, at cost. Accumulated other comprehensive loss Total Campbell Soup Company shareowners' equity Noncontrolling interests... Total equity.... Total liabilities and equity... July 28, 2013 $- - 12 362 1,772 (364) (565) 1,217 (7) 1,210 $8,323 July 29, 2012 $- 329 9,584 (8,259) (776) 898 20 898 $6,530 -