Accounting for Shares: Issuing, Repurchasing, and Reissuing Stock

Abstract

Question 1 Issued Shares by Flowers Gaming Description Debit Credit Cash 35 million shares*$16 $560 Million [Name] $560 million Reacquired shares Description Debit Credit [Author] (1 shares*$14) $14 Million Cash $14 Million [Name] Description Debit Credit Cash (1 million*$19) $19 million [Author] (1 million*16) $16 million Additional Paid In (1 million*$3) $3 million Question 2 Reacquired shares= 2000000*70=$140000000 Description Debit Credit [Author] 140000000 Cash 140[phone]000*71=$71000000 Description Debit Credit Cash 71000000 [Author] 70000000 Additional Paid In 1000000 ` 1000000*67=$67000000 Description Debit Credit Cash 67000000 Additional Paid In 1000000 Retained Earnings 2000000 [Author] 70000000 Question 3 Wright Logistics reacquired Shares amount Description Debit Credit [Author] (2 million shares*$20) $40 Million [Author] (1 million shares*$26) $26 Million Cash $66 Million Description Debit Credit Cash (1 million*$29) $29 million [Author] (1 million*26) $26 million Additional Paid In (1 million*$3) $3 million paid-in capital share repurchase increases by $ 3 million Question 4 Face Value-=$10000000 Annual Coupon Rate=5% Coupon frequency= semi-annually Coupon per period=$250000 Annual Coupon=$500000 Yield to maturity is 6 percent The proceeds from the bonds issue is $9573489.86 Question8 2000 shares of $3 par stock were issued for $13 per share. How much would common stock be journalized for? Total Common Stock=2000 shares*$13= $26000 Would common stock be debited or credited? Common stock is debited How much would paid in capital-excess of par be journalized for? We first credit shares*par stock of 3=6000 Therefore, paid in capital-excess= 2000*$10=$20000 Question 9 On January 23, 2013, Puma Sports reacquired 15 million shares at $25 per share Description Debit Credit Cash 220 million shares*$22 $4840 Million [Author] 220*$1 220 million Additional Paid In 220*21 $4620 million Reacquired shares journal entries are Description Debit Credit [Author] (15 million shares*$25) $375 Cash $375 On September 3, 2013, Puma Sports sold 1 million treasury shares at $26 per share...