MCD Corporation presented the following statement of shareholders' equity in its 2020 annual report: (in millions....

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MCD Corporation presented the following statement of shareholders' equity in its 2020 annual report: (in millions. except per share data) Common Stock Issued Shares Amount $16.6 Additional Paid-in Capital Treasury Stock Amount 1.660.6 $7,653.9 Balance, 12/31/2019 Net income Common stock dividends Treasury stock purchases Share-based compensation Stock option exercises Balance, 12/31/2020 1.660.6 $16.6 92.4 157.3 $7.903.6 Retained Earnings $52.930.5 4,730.5 (3,752.9) $53.908.1 Shares (914.3) (4.3) 3.4 (915.2) ($66,328.6) (874.1) 136.3 ($67.066.4) Total Stockholders' Equity ($5,727.6) 4,730.5 (3,752.9) (874.1) 92.4 293.6 ($5.238.1) Required: (5 points each) 1. The common stock dividends were declared and paid in 2020. Determine the per share amount of common stock dividends that MCD paid on its outstanding shares in 2020. 2. Determine the approximate price per share that MCD received when the option holders exercised their stock options in 2020. (MCD's stock began 2020 around $214 per share, fell to around $137 per share in mid-March 2020 because of the Covid pandemic and closed 2020 just above $214 per share.) 3. Determine the approximate price that MCD paid per share to acquire the treasury shares in 2020. Also determine the approximate per share price that MCD paid for treasury shares before 2020. 4. In its operating activities section of its 2020 statement of cash flows, MCD adds back $92 of stock compensation expense. Assuming that all of the compensation expense was recorded on the same date, prepare the summary journal entry to record stock-based compensation expense. 5. Assume that in 2020 MCD sold 100 shares of treasury stock for $170 per share. Using the FIFO cost flow assumption (it is not only for inventory), assume that the treasury shares had been acquired for $50 per share. Prepare the journal entry to record the sale of these treasury shares. MCD Corporation presented the following statement of shareholders' equity in its 2020 annual report: (in millions. except per share data) Common Stock Issued Shares Amount $16.6 Additional Paid-in Capital Treasury Stock Amount 1.660.6 $7,653.9 Balance, 12/31/2019 Net income Common stock dividends Treasury stock purchases Share-based compensation Stock option exercises Balance, 12/31/2020 1.660.6 $16.6 92.4 157.3 $7.903.6 Retained Earnings $52.930.5 4,730.5 (3,752.9) $53.908.1 Shares (914.3) (4.3) 3.4 (915.2) ($66,328.6) (874.1) 136.3 ($67.066.4) Total Stockholders' Equity ($5,727.6) 4,730.5 (3,752.9) (874.1) 92.4 293.6 ($5.238.1) Required: (5 points each) 1. The common stock dividends were declared and paid in 2020. Determine the per share amount of common stock dividends that MCD paid on its outstanding shares in 2020. 2. Determine the approximate price per share that MCD received when the option holders exercised their stock options in 2020. (MCD's stock began 2020 around $214 per share, fell to around $137 per share in mid-March 2020 because of the Covid pandemic and closed 2020 just above $214 per share.) 3. Determine the approximate price that MCD paid per share to acquire the treasury shares in 2020. Also determine the approximate per share price that MCD paid for treasury shares before 2020. 4. In its operating activities section of its 2020 statement of cash flows, MCD adds back $92 of stock compensation expense. Assuming that all of the compensation expense was recorded on the same date, prepare the summary journal entry to record stock-based compensation expense. 5. Assume that in 2020 MCD sold 100 shares of treasury stock for $170 per share. Using the FIFO cost flow assumption (it is not only for inventory), assume that the treasury shares had been acquired for $50 per share. Prepare the journal entry to record the sale of these treasury shares.

Answer rating: 100% (QA)

To determine the per share amount of common stock dividends paid by MCD in 2020 we need to divide the total common stock dividends by the number of outstanding shares Total common stock dividends 924 ... View the full answer