Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-03 Requirement 1: NATIONAL SUPPLY General Journal Account February 15,

2011 Retired Common stock Paid-in capital - excess of par Retained earnings Cash Accounted for as treasury stock Treasury stock Cash February 17, 2012 Retired Common stock Paid-in capital - excess of par Paid-in capital - share repurchase Cash Accounted for as treasury stock Treasury stock Cash November 9, 2013 Retired Cash Common stock Paid-in capital - excess of par Accounted for as treasury stock Cash Retained Earnings Treasury stock Debit Credit

300,000 1,500,000 600,000 2,400,000

- Correct!

2,400,000 2,400,000
- Correct!

300,000 1,500,000 150,000 1,650,000

- Correct!

1,650,000 1,650,000
- Correct!

1,400,000 200,000 1,200,000

- Correct!

1,400,000 200,000 1,600,000

- Correct!

NATIONAL SUPPLY Shareholders' Equity At January 1, 2013 Shares Retired Paid-in capital: Common stock, $1 par Paid-in capital - excess of par $ 5,600,000 28,200,000 $ Treasury Stock 6,000,000 30,000,000

Paid-in capital - share repurchase Retained earnings Less: treasury stock Total shareholders' equity

150,000 130,900,000 $ 164,850,000

Correct!

131,300,000 (2,450,000) $ 164,850,000

Correct!

Given Data P18-03: NATIONAL SUPPLY Balance Sheet At December 31, 2010 ($ in millions) Shareholders' Equity Common stock (6 million shares at $1 par) Paid -in capital - excess of par Retained earnings (deficit) Shares reacquired 2/15/2011 Price per share Shares reacquired 2/17/2012 Price per share Shares sold 11/9/2013 Price per share Net income for 2011 Net income for 2012 Net income for 2013

$ 6,000,000 30,000,000 86,500,000 300,000 8 300,000 6 200,000 7 14,000,000 15,000,000 16,000,000

$ $ $ $ $ $

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-05 Requirement 1: BRANCH-RICKIE CORPORATION General Journal Account 2011 November 1 - declaration date Retained earnings Cash dividends payable November 15 - date of record no entry December 1 - payment date Cash dividends payable Cash 2012 March 1 - declaration date Investment in Warner bonds Gain on appreciation of investment Retained earnings Property dividends payable March 13 - date of record no entry April 5 - payment date Property dividends payable Investment in Warner bonds July 12 Retained earnings Common stock Paid-in capital - excess of par Cash November 1 - declaration date Retained earnings Cash dividends payable November 15 - date of record no entry December 1 - payment date Cash dividends payable Cash 2013 January 15 Paid-in capital - excess of par Common stock November 1 - declaration date Retained earnings Cash dividends payable November 15 - date of record no entry Debit Credit

84,000,000 84,000,000
- Correct!

84,000,000 84,000,000
- Correct!

300,000 300,000 1,600,000 1,600,000

- Correct! - Correct!

1,600,000 1,600,000 110,250,000 5,000,000 100,000,000 5,250,000 88,000,000 88,000,000

- Correct! - Correct! - Correct!

88,000,000 88,000,000
- Correct!

55,000,000 55,000,000 107,250,000 107,250,000

- Correct! - Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-05 December 1 - payment date Cash dividends payable Cash

107,250,000 107,250,000
- Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-05 Requirement 2: BRANCH-RICKIE CORPORATION Statement of Shareholders' Equity For the Years Ended December 31, 2011, 2012 and 2013 ($ in 000s) Additional Paid-in Capital 630,000 Total Retained Shareholders' Earnings Equity 970,000 1,705,000 330,000 330,000 (84,000) (84,000) 1,216,000 1,951,000
Correct! Correct!

Jan. 1, 2011 Net income Cash dividends Dec. 31, 2011 Property dividends Common stock dividend Net income Cash dividends Dec. 31, 2012 3 for 2 split effected in the form of a stock dividend Net income Cash dividends Dec. 31, 2013

Common Stock 105,000

105,000
Correct!

630,000
Correct!

5,000

100,000

110,000
Correct!

730,000
Correct!

(1,600) (110,250) 395,000 (88,000) 1,411,150

Correct!

(1,600) (5,250) 395,000 (88,000) 2,251,150

Correct!

55,000

(55,000) 455,000 (107,250) 1,758,900

Correct!

165,000
Correct!

675,000
Correct!

455,000 (107,250) 2,598,900

Correct!

Given Data P18-05: BRANCH-RICKIE CORPORATION

Common stock, 105 million shares at $1 par Paid-in-capital--excess of par Retained earnings Cash dividend declared on common shares, 11/1/2011 Bond fair value Bond purchase price % Common stock dividend declared and distributed Market value of common stock, 7/12/2012 Equivalent whole shares Cash dividend declared on common shares, 11/1/2012 Stock split form Market value of common stock, 1/15/2013 Cash dividend declared on common shares, 11/1/2013 Net income for year 2011 Net income for year 2012 Net income for year 2013

$ 105,000,000 630,000,000 970,000,000 $ $ $ $ $ $ $ $ $ $ $ 0.80 1,600,000 1,300,000 5% 21.00 250,000 0.80 50% 22.00 0.65 330,000,000 395,000,000 455,000,000 per share

per share per share

per share

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-12 Part A, Requirement 1: General Journal Account January 2, 2011 Cash Common stock Paid-in capital - excess of par, common January 2, 2011 Cash Preferred stock Paid-in capital - excess of par, preferred Debit 30,000,000 3,000,000 27,000,000 20,000,000 5,000,000 15,000,000
- Correct!

Credit
- Correct!

Part A, Requirement 2: NICKLAUS CORPORATION Balance Sheet-Shareholders' Equity Section March 31, 2011 Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, issued and outstanding 1,000,000 shares Common stock, $1 par, authorized 5,000,000 shares, issued and outstanding 3,000,000 shares Paid-in capital - excess of par Retained earnings Total shareholders' equity

5,000,000

3,000,000 42,000,000 1,000,000 $ 51,000,000

Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-12 Part B, Requirement 1: NICKLAUS CORPORATION General Journal Account June 30, 2011 Treasury stock Cash July 31, 2011 Cash Treasury stock Paid-in capital - share repurchase September 30, 2011 Cash Paid-in capital - share repurchase Treasury stock Debit 2,400,000 2,400,000 750,000 600,000 150,000 500,000 100,000 600,000
- Correct! - Correct! - Correct!

Credit

Part B, Requirement 2: NICKLAUS CORPORATION Balance Sheet-Shareholders' Equity Section September 30, 2011 Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, issued and outstanding 1,000,000 shares Common stock, $1 par, authorized 5,000,000 shares, issued 3,000,000 shares, 2,900,000 shares outstanding Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Less: Treasury stock (200,000 shares at cost) Total shareholders' equity

5,000,000

3,000,000 42,000,000 50,000 4,000,000 $ 54,050,000 (1,200,000) $ 52,850,000

Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-12 Part C, Requirement 1: NICKLAUS CORPORATION General Journal Account October 1, 2011 No entry November 1, 2011 Retained earnings Dividends payable - common Dividends payable - preferred November 15, 2011 No Entry December 1, 2011 Dividends payable - common Dividends payable - preferred Cash December 2, 2011 Retained earnings Common stock dividends distributable Paid-in capital - excess of par, common December 28, 2011 Common stock dividends distributable Common stock Debit Credit

540,000 290,000 250,000

- Correct!

290,000 250,000 540,000 580,000 29,000 551,000 29,000 29,000

- Correct! - Correct! - Correct!

Part C, Requirement 2: NICKLAUS CORPORATION Balance Sheet-Shareholders' Equity Section December 31, 2011 Shareholders' equity Preferred stock, $5 par, authorized 1,000,000 shares, issued and outstanding 1,000,000 shares Common stock, $.50 par, authorized 10,000,000 shares, issued 6,058,000 shares, 5,858,000 shares outstanding Paid-in capital - excess of par Paid-in capital - share repurchase Retained earnings Less: Treasury stock (100,000 shares at cost) Total shareholders' equity

5,000,000

3,029,000 42,551,000 50,000 5,380,000 $ 56,010,000 (1,200,000) $ 54,810,000

Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-12 Part C, Requirement 3: NICKLAUS CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2011 ($ in 000s)

Preferred Stock January 2, 2011 Issuance of preferred stock Issuance of common stock Purchase of treasury stock Sale of treasury stock Net income Common cash dividends Preferred cash dividends Stock dividend December 31, 2011 5,000

Common Stock

Additional Paid-in Capital 15,000 27,000 50

Retained Earnings

Treasury Stock

3,000

(2,400) 1,200 6,500 (290) (250) (580) 5,380

Correct!

5,000
Correct!

29 3,029
Correct!

551 42,601
Correct!

(1,200)
Correct!

Total Shareholders' Equity 20,000 30,000 (2,400) 1,250 6,500 (290) (250) 54,810
Correct!

Given Data P18-12: NICKLAUS CORPORATION Part A Common stock authorized Common stock par value Preferred stock authorized Preferred stock par value Common stock issued for cash, 1/2/2011 Common stock average price Preferred stock issued, 1/2/2011 Preferred stock price per share Part B Stock reacquired, 6/30/2011 Treasury stock cost per share Treasury stock reissued, 7/31/2011 Treasury stock cost per share Treasury stock reissued, 9/30/2011 Treasury stock cost per share Part C Common stock new par value, 10/1/2011 Common stock shares outstanding Common stock dividend declared, 11/1/2011 Preferred stock dividend declared, 11/1/2011 Declared stock dividend payable, 12/2/2011 Cost per share at declaration Additional shares issued Net income for 4th quarter

$ $ $ $

5,000,000 1.00 1,000,000 5.00 3,000,000 10.00 1,000,000 20.00

shares shares shares per share shares

$ $ $

200,000 shares 12.00 50,000 shares 15.00 50,000 shares 10.00

$ $ $ $ $

0.50 2,900,000 0.05 per share 0.25 per share 1% 10.00 58,000 2,500,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 18-13 Requirement 1: CHAMPION CHEMICAL CORPORATION General Journal ($ in 000s) Account To revalue assets: Retained Earnings Inventory Land Retained earnings To eliminate part of deficit against additional paid-in capital: Additional paid-in capital Retained earnings To eliminate remainder of deficit against common stock: Common stock Retained earnings Debit 105 105 5 5
- Correct! - Correct!

Credit

60 60
- Correct!

240 240
- Correct!

Requirement 2: CHAMPION CHEMICAL CORPORATION Balance Sheet At January 1, 2012 ($ in millions) ASSETS Current Assets: Cash Receivables Inventory Total Current Assets Land Buildings and equipment (net) Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Stockholders' Equity: Common stock Additional paid-in capital Retained earnings (deficit) Total Stockholders' Equity Total Liabilities and Stockholders' Equity

20 40 125 185 45 90 320

Correct!

240 80 80 320

Correct!

Given Data P18-13: CHAMPION CHEMICAL CORPORATION ($ in millions) Devalue inventory for obsolescence Increase in value of land CHAMPION CHEMICAL CORPORATION Balance Sheet At December 31, 2011 ($ in millions) Cash Receivables Inventory Land Buildings and equipment (net) $20 40 230 40 90 $420 $240 320 60 (200) $420 $105 $5

Liabilities Common stock (320 million shares at $1 par) Additional paid-in capital Retained earnings (deficit)