Let's journalize. Only prepare journal entries for the most current year. 3. Start with the Capital Stock and Capital in Excess of Par Value columns on the Consolidated Statement of Equity for Ford Motor Company. We see that Capital in Excess of Part increased $163 mill, but the par value account did not change. We can also see on the cash flow statement that no stock was issued. Since the line item says that the increase to the account includes share-based compensation impacts, we will assume that the entire amount is for share-based compensation. The entry would be similar to Illustration 19-3 and 19-3a. Show the journal entry here. (6 points) Date Accounts Debit Credit Paragraph SUU cm Emph Styles 4. Move to the Retained Earnings Column. Show the journal entry to close out net income to Retained Earnings. (6 points) . Date Accounts Debit Credit 5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915 on the statement of equity. The amount actually paid on the cash flow statement is $2,905. Show journal entry here: (6 points). Date Accounts Debit Credit O ] Note-we will ignore the $1mil reduction in Retained Earnings on the Treasury Stock/other line. We aren't given enough information to re-create this journal entry. 7. We can move to the Treasury Stock Column next. We see that treasury stock was purchased. Notice that the change in the Treasury Stock account equals the cash received from sale of common stock on the cash flow statement. Show the journal entry for the purchase of treasury stock. (6 points) Date Accounts Debit Credit 8. Move on to the Accumulated Other Comprehensive Incomel (Loss) column. The total change is $407 mil. Remember there are four items that are charged to Other Comprehensive Income. To find the break-down of the $407 mil go to the Consolidated Statement of Comprehensive Income. I'll do the foreign currency translation adjustment: Date Accounts Other comprehensive lossforeign currency Payables-(accounts payable) Credit Debit 523 523 You do the marketable securities adjustment (4 points) Date Accounts Debit Credit I'll take the derivatives adjustment as well, although we are just 2 weeks away from learning this. I will make the adjustment to marketable securities Date Accounts Debit Credit Marketable Securities 183 Other comprehensive income-Derivatives 183 Lastly, we have the pension adjustment. The pension liability is included under "Other liabilities and deferred revenue." (4 points) Date Accounts Debit Credit This is the end of Case 3. Save your file and upload it in the drop box provided. Equity Attributable to Ford Motor Company Cap.in Excess of Par Value of Stock 521421 Capital Stock $ 41 Retained FamningAccumulated Delicit) 5 14980 4589 Accumulated Other Comprehensive Income foss) (Note 21) 16257) $ Equity Atributable to Non controlling Interests 15 Treasury Stock Tot 1977) $19.200 4.589 Total Equity 529223 4,600 75 11 (7661 Balance atcember 31, 2015 Net Income ther contentive come to te Somon stock issued including share-based cumpmation India) 209 209 209 13 15) (145) (145) 13.376) 11,122) 5 9.729 Cash dividends declared (s) Balance at December 31, 2016 (370 11.193 5 5 4 $ 29,745 5 21630 (70135 17 3 41 5 21.6.30 5 $ 5 (7013) Balance at December 31, 2016 doption of conting standards $ 29,745 572 16,190 566 7.731 01.1221 5 29.729 572 7.731 54 26 02 201 03 (1331 ther comprehensive incomatose of tax mon stocked including shoe-based impact) Tech Cash denis declaredal Balance of December 31, 2017 207 (131) 11311 (2.5841) (1253) 5 35.578 (2.5841 21 906 5 $ 5 415 21:56 20 $ (6965) $ 35,606 40 5 21.30 5 $ 5.99 $ 5 11.2535 5 21,906 3677 35.578 1671 (4011) 11 $35.606 1,695 1407 Balance December 31, 2017 Netice the comprehensive income tax Pomon stock bood (including share based Comento impact) Tre steder vided and dividend events declared (a) Balance at December 31, 2018 163 16 (164) (164) (2.915) 11.417) S 35532 163 (164) 22,920 3.964 02.915) (121 34 4 $ $ $ 22,005 $ 07,365) 5 INO mg Hemg Subtitle Suono tm. Emphasis Theme Paragraph Styles For the years onded December 31, 2017 2016 2018 $ $ 146.294 venues utomotive Ord Credit Mobility Total revenues (Note 4) 141,546 10,253 145,653 11,113 12.018 10 151,800 156.776 160,130 131 121 136,269 Costs and expenses Sost of sales Selling, administrative, and other expenses Ford Credit interest, operating, and other expenses Total costs and expenses 126 195 10.972 8.847 11,521 9847 151.895 11.403 9.463 157,135 146,014 1.133 1,171 Interest expense on Automotive delt interest expense on other debit 894 57 57 2.247 169 1.780 Other incont Note 5) Equity in net income of fated companies Incotte belove income taxes Provision for benefit from income taxes (Note 7) Net Income Let Income (Loss) attributable to no controlling interests Net income attributable to Ford Motor Company 123 4,345 650 1262 1201 159 402 7.757 26 6,784 2,184 4,600 11 10 5 7.731 5 1,611 5 5 0.93 FARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASSB STOCK (Note 8) Basic Incom Diluted income 1 16 115 0.92 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2016 2017 2018 5 4600 7.757 5 1.695 15231 314 234) (1024) (0) 219 16 183 32 Net Income Other comprehensive Income/loss), net of tax (Note 21) Foreign curry translation Marketalle secur Destive Instruments Pension and other postrement benuts Total other comprehensive income fossi, nef of tax Comprehensive Income Comprehensive Income foss) tributable to controlling wees Comprehensive income tale to Ford Motor Company 3843 10 31831 24 5 7.786 2.270 5 ale art of the consolidated financial statements Let's journalize. Only prepare journal entries for the most current year. 3. Start with the Capital Stock and Capital in Excess of Par Value columns on the Consolidated Statement of Equity for Ford Motor Company. We see that Capital in Excess of Part increased $163 mill, but the par value account did not change. We can also see on the cash flow statement that no stock was issued. Since the line item says that the increase to the account includes share-based compensation impacts, we will assume that the entire amount is for share-based compensation. The entry would be similar to Illustration 19-3 and 19-3a. Show the journal entry here. (6 points) Date Accounts Debit Credit Paragraph SUU cm Emph Styles 4. Move to the Retained Earnings Column. Show the journal entry to close out net income to Retained Earnings. (6 points) . Date Accounts Debit Credit 5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915 on the statement of equity. The amount actually paid on the cash flow statement is $2,905. Show journal entry here: (6 points). Date Accounts Debit Credit O ] Note-we will ignore the $1mil reduction in Retained Earnings on the Treasury Stock/other line. We aren't given enough information to re-create this journal entry. 7. We can move to the Treasury Stock Column next. We see that treasury stock was purchased. Notice that the change in the Treasury Stock account equals the cash received from sale of common stock on the cash flow statement. Show the journal entry for the purchase of treasury stock. (6 points) Date Accounts Debit Credit 8. Move on to the Accumulated Other Comprehensive Incomel (Loss) column. The total change is $407 mil. Remember there are four items that are charged to Other Comprehensive Income. To find the break-down of the $407 mil go to the Consolidated Statement of Comprehensive Income. I'll do the foreign currency translation adjustment: Date Accounts Other comprehensive lossforeign currency Payables-(accounts payable) Credit Debit 523 523 You do the marketable securities adjustment (4 points) Date Accounts Debit Credit I'll take the derivatives adjustment as well, although we are just 2 weeks away from learning this. I will make the adjustment to marketable securities Date Accounts Debit Credit Marketable Securities 183 Other comprehensive income-Derivatives 183 Lastly, we have the pension adjustment. The pension liability is included under "Other liabilities and deferred revenue." (4 points) Date Accounts Debit Credit This is the end of Case 3. Save your file and upload it in the drop box provided. Equity Attributable to Ford Motor Company Cap.in Excess of Par Value of Stock 521421 Capital Stock $ 41 Retained FamningAccumulated Delicit) 5 14980 4589 Accumulated Other Comprehensive Income foss) (Note 21) 16257) $ Equity Atributable to Non controlling Interests 15 Treasury Stock Tot 1977) $19.200 4.589 Total Equity 529223 4,600 75 11 (7661 Balance atcember 31, 2015 Net Income ther contentive come to te Somon stock issued including share-based cumpmation India) 209 209 209 13 15) (145) (145) 13.376) 11,122) 5 9.729 Cash dividends declared (s) Balance at December 31, 2016 (370 11.193 5 5 4 $ 29,745 5 21630 (70135 17 3 41 5 21.6.30 5 $ 5 (7013) Balance at December 31, 2016 doption of conting standards $ 29,745 572 16,190 566 7.731 01.1221 5 29.729 572 7.731 54 26 02 201 03 (1331 ther comprehensive incomatose of tax mon stocked including shoe-based impact) Tech Cash denis declaredal Balance of December 31, 2017 207 (131) 11311 (2.5841) (1253) 5 35.578 (2.5841 21 906 5 $ 5 415 21:56 20 $ (6965) $ 35,606 40 5 21.30 5 $ 5.99 $ 5 11.2535 5 21,906 3677 35.578 1671 (4011) 11 $35.606 1,695 1407 Balance December 31, 2017 Netice the comprehensive income tax Pomon stock bood (including share based Comento impact) Tre steder vided and dividend events declared (a) Balance at December 31, 2018 163 16 (164) (164) (2.915) 11.417) S 35532 163 (164) 22,920 3.964 02.915) (121 34 4 $ $ $ 22,005 $ 07,365) 5 INO mg Hemg Subtitle Suono tm. Emphasis Theme Paragraph Styles For the years onded December 31, 2017 2016 2018 $ $ 146.294 venues utomotive Ord Credit Mobility Total revenues (Note 4) 141,546 10,253 145,653 11,113 12.018 10 151,800 156.776 160,130 131 121 136,269 Costs and expenses Sost of sales Selling, administrative, and other expenses Ford Credit interest, operating, and other expenses Total costs and expenses 126 195 10.972 8.847 11,521 9847 151.895 11.403 9.463 157,135 146,014 1.133 1,171 Interest expense on Automotive delt interest expense on other debit 894 57 57 2.247 169 1.780 Other incont Note 5) Equity in net income of fated companies Incotte belove income taxes Provision for benefit from income taxes (Note 7) Net Income Let Income (Loss) attributable to no controlling interests Net income attributable to Ford Motor Company 123 4,345 650 1262 1201 159 402 7.757 26 6,784 2,184 4,600 11 10 5 7.731 5 1,611 5 5 0.93 FARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASSB STOCK (Note 8) Basic Incom Diluted income 1 16 115 0.92 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2016 2017 2018 5 4600 7.757 5 1.695 15231 314 234) (1024) (0) 219 16 183 32 Net Income Other comprehensive Income/loss), net of tax (Note 21) Foreign curry translation Marketalle secur Destive Instruments Pension and other postrement benuts Total other comprehensive income fossi, nef of tax Comprehensive Income Comprehensive Income foss) tributable to controlling wees Comprehensive income tale to Ford Motor Company 3843 10 31831 24 5 7.786 2.270 5 ale art of the consolidated financial statements