At December 31, 2018, Mountain Corporation reported the stockholders' equity accounts shown here (with dollar amounts...

 

Transcribed Image Text:

At December 31, 2018, Mountain Corporation reported the stockholders' equity accounts shown here (with dollar amounts in millions, except per-share amounts). E (Click the icon to view the data.) Mountain's 2019 transactions included i (Click the icon to view the transactions.) Requirements Journalize Mountain's transactions in parts b, c, d, and e. Explanations are not required. 1. 2. What was the overall effect of these transactions (parts a-e) on Mountain's stockholders' equity? Requirement 1. Journalize Mountain's transactions in b, c, d, and e. Explanations are not required. (Enter amounts in millions as provided to you in the problem statement. Record debits first, then credits. Exclude explanations from any journal entries.) b. Issuance of 16 million shares of common stock for $11.50 per share. Journal Entry Data Table More Info Date Accounts Debit Credit b. a. Net income, $448 million b. Issuance of 16 million shares of common stock for $11.50 per share c. Purchase of 10 million shares of treasury stock for $130 million Common stock, $2.00 par value per share, 29 million shares issued 58 Paid-in capital in excess of par value 73 d. Sold 7 million of the treasury shares purchased in part c for $105 million Retained earnings 265 e. Declaration and payment of cash dividends of $30 million (50) Treasury stock, at cost $ 346 Total stockholders' equity Print Done At December 31, 2018, Mountain Corporation reported the stockholders' equity accounts shown here (with dollar amounts in millions, except per-share amounts). E (Click the icon to view the data.) Mountain's 2019 transactions included i (Click the icon to view the transactions.) Requirements Journalize Mountain's transactions in parts b, c, d, and e. Explanations are not required. 1. 2. What was the overall effect of these transactions (parts a-e) on Mountain's stockholders' equity? Requirement 1. Journalize Mountain's transactions in b, c, d, and e. Explanations are not required. (Enter amounts in millions as provided to you in the problem statement. Record debits first, then credits. Exclude explanations from any journal entries.) b. Issuance of 16 million shares of common stock for $11.50 per share. Journal Entry Data Table More Info Date Accounts Debit Credit b. a. Net income, $448 million b. Issuance of 16 million shares of common stock for $11.50 per share c. Purchase of 10 million shares of treasury stock for $130 million Common stock, $2.00 par value per share, 29 million shares issued 58 Paid-in capital in excess of par value 73 d. Sold 7 million of the treasury shares purchased in part c for $105 million Retained earnings 265 e. Declaration and payment of cash dividends of $30 million (50) Treasury stock, at cost $ 346 Total stockholders' equity Print Done

Answer rating: 100% (QA)

1 Preparation of journal entries of mounta... View the full answer