Step by Step Assistance

Saturday, 7 December 2013

Unilever Group reports the following equity information for the years ended December 31, 2007 and 2008 (euros in millions). December 31 2008 2007 Share capital € 493 € 493 Share premium 133 159 Other reserves (6,461 ) (3,420 ) Retained profit 15,821 15,176 Shareholders’ equity € 9,986 € 12,408 1. Match each of the three account titles share capital, share premium, and retained profit with the usual account title applied under U.S. GAAP.

Unilever Group reports the following equity information for the years ended December 31, 2007 and 2008 (euros in millions).
   
  December 31 2008 2007
  Share capital 493   493  
  Share premium   133     159  
  Other reserves   (6,461 )   (3,420 )
  Retained profit   15,821     15,176  
 

 

 
  Shareholders’ equity 9,986   12,408  
 



 



 

   
1.
Match each of the three account titles share capital, share premium, and retained profit with the usual account title applied under U.S. GAAP.
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Explanation: 3.
2008 Retained profit = 2007 Retained profit + 2008 Income 2008 Dividends
€ 15,821   € 15,176   € 2,678   € 2,033

Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011. Common stock—$29 par value, 43,000 shares authorized, 33,000 shares issued and outstanding $ 957,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 262,000 Total stockholders’ equity $ 1,269,000 In year 2012, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 2,700 shares of its own stock at $29 cash per share. Jan. 7 Directors declared a $1 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 400 of its treasury shares at $34 cash per share. Aug. 27 Sold 2,300 of its treasury shares at $27 cash per share. Sept. 9 Directors declared a $1 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $13,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions for 2012.

Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011.
  
     
  Common stock—$29 par value, 43,000 shares authorized,
    33,000 shares issued and outstanding
$ 957,000  
  Paid-in capital in excess of par value, common stock   50,000  
  Retained earnings   262,000  
 

  Total stockholders’ equity $ 1,269,000  
 




 
In year 2012, the following transactions affected its stockholders’ equity accounts.
 
  Jan. 2   
Purchased 2,700 shares of its own stock at $29 cash per share.
  Jan. 7   
Directors declared a $1 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.
  Feb. 28    Paid the dividend declared on January 7.
  July 9    Sold 400 of its treasury shares at $34 cash per share.
  Aug. 27    Sold 2,300 of its treasury shares at $27 cash per share.
  Sept. 9   
Directors declared a $1 per share cash dividend payable on October 22 to the September 23 stockholders of record.
  Oct. 22    Paid the dividend declared on September 9.
  Dec. 31   
Closed the $13,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
  
Required:
1.
Prepare journal entries to record each of these transactions for 2012.
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Explanation: