ACCY500 Accounting Measurement, Reporting and Control:

Module 7 Cases
Question 1: YaHo, Inc. – Shareholders’ Equity
YaHo, Inc. reported the following summarized balance sheet at
December 31, 2017:
Assets: No data
Current assets No data
$3,600,000
Property and equipment, net No data
5,200,000
Total assets
$8,800,000
Liabilities: No data
Liabilities No data
$200,000
Stockholders’ equity: No data
Common stock, $1 par No data
100,000
Paid-in capital in excess of par, common No data
5,500,000
Retained earnings No data
3,000,000
Total liabilities and equity No data
$8,800,000

During 2018, YaHo, Inc. completed these transactions that affected

stockholders’ equity:
March 1 Issued 65,000 shares of common stock for $62 per share.

May 10 Reacquired 6,000 shares of common stock as treasury stock,

paying $65 per share.
No data
June 1 Declared a cash dividend of $2 per common share.

July 1 Paid the cash dividend.

No data
October 21 Sold 3,000 shares of the treasury stock for $70 per share.

Questions:

1. What are the journal or worksheet entries for YaHo’s transactions?

2. What is YaHo’s stockholders’ equity at December 31, 2018? Net income for
2018 was $700,000.
Question 2: Chevron Corporation – Shareholders’ Equity
The following pages contain the consolidated statement of equity for Chevron from
their 2018 annual report. Using this information, please answer the following
questions:

1. What was the number of common shares outstanding at the end of 2018?

2. a. How many shares of common stock did Chevron repurchase in 2018?

b. What was the average price per share Chevron paid for the shares it repurchased
in 2018?

c. How many shares did Chevron (re)issue in 2018?

d. What was the average price Chevron received from issuing shares to employees
and shareowners in 2018?

2
3
Question 3: Wells Fargo & Company – Shareholders’ Equity
Using the attached excerpts from Wells Fargo & Company’s 2017 annual report answer
the following questions. In addition:
- All numbers in Wells Fargo’s 2017 financial statements are in $ millions.
- Provide calculations when necessary.

1. Shares Issued and Outstanding

(a) How many shares of common stock were authorized at fiscal year-end 2017?
How many had been issued as of fiscal year-end 2017?

(b) Wells Fargo also has repurchased some of its own shares of stock that had been
previously issued (Treasury Stock). How many shares did Wells Fargo hold as
treasury stock at the end of 2017?

(c) How many total shares were outstanding at fiscal year-end 2017?

2. Common Stock

(a) What is the par value of each share of common stock issued?

(b) How much money in excess of the par value of the stock had been contributed
by shareholders by the end of 2017?

(c) How much did Wells Fargo pay for treasury stock it held at fiscal year-end
2017?

3. Transactions Related to Shareholders’ Equity

For each activity below, provide the entry made by Wells Fargo (with amounts):

(a) Record the declaration and payment of all dividends in 2017.

(b) Record the purchase of treasury stock in 2017.

4
4. Earnings per Share

(a) What is Wells Fargo’s basic earnings per share for 2017?

(b) What is Wells Fargo’s diluted earnings per share for 2017?

5
6
7
8
9
Question 4: Top of the World, Ltd. – Shareholders’ Equity
Top of the World, Ltd. reported the following summarized balance
sheet at December 31, 2010:
Assets: No data
Current assets No data
$13,500
Property and equipment, net No data
41,500
Total assets
$55,000
Liabilities: No data
Liabilities No data
$35,000
Stockholders’ equity: No data
Common stock, $1 par (1,000 shares issued) No d1,000
No da
Preferred stock, $100 par (no shares issued) 0
0
Paid-in capital in excess of par 14,000
No data
Retained earnings 5,000
No data
Total liabilities and equity $55,000

During 2011, Top of the World, Ltd. completed these transactions

that affected stockholders’ equity:
January 15 Issued 2,000 shares of common stock for $20 per share.

February 1 Issue 100 shares of preferred stock for $110 per share.

June 1 Declared a cash dividend of $5 per preferred share and $1 per

common share.

June 30 Paid the cash dividend.

No data
October 1 Reacquired 200 shares of common stock as treasury stock,
paying $25 per share.

November 1 Sold 100 shares of the treasury stock for $28 per share.

Questions:

1. What are the journal or worksheet entries for Top of the World’s transactions?
2. What is Top of the World’s stockholders’ equity at December 31, 2011? Net
income for 2011 was $4,000.

10
Question 5: The Proctor & Gamble Company (P&G) –
Shareholders’ Equity
The following pages contains the consolidated statements of shareholders’ equity for
P&G from their 2016 annual report (fiscal year 2016 ended on 30 June 2016). Using
this information, please answer the following questions:

1. What was the number of common shares outstanding at 30 June 2016?

2. a. How many shares of common stock did P&G repurchase in fiscal year 2016?

b. What was the average price per share P&G paid for the shares it repurchased in
fiscal year 2016?

c. How many shares did P&G (re)issue in fiscal year 2016?

d. What was the average price P&G received from issuing shares to employees and
shareowners in fiscal year 2016?

11
12
Question 6: McDonald’s Corporation – Shareholders’
Equity
Using the attached excerpts from McDonald‘s 2013 annual report answer the following
questions. In addition:
- All numbers in McDonald‘s 2013 financial statements are in $ millions.
- Provide calculations when necessary.

1. Shares Issued and Outstanding

a) How many shares of common stock were authorized at fiscal year-end 2013?
How many had been issued as of fiscal year-end 2013?

b) How many shares of preferred stock were authorized at fiscal year-end 2013?
How many had been issued as of fiscal year-end 2013?

c) McDonald‘s also has repurchased some of its own shares of stock that had been
previously issued (treasury stock). How many shares did McDonald‘s hold as
treasury stock at the end of 2013?

d) How many total shares were outstanding at fiscal year-end 2013?

2. Common Stock

a) What is the par value of each share of common stock issued?

b) How much money in excess of the par value of the stock had been contributed
by shareholders by the end of 2013?

c) How much did McDonald‘s pay for treasury stock it held at fiscal year-end
2013?

13
 3. Transactions Related to Shareholders’ Equity

For each activity below, provide the entry made by McDonald‘s (with amounts):

a) Record the declaration and payment of all dividends in 2013.

b) Record the purchase of Treasury Stock in 2013.

4. Earnings per Share

a) What is McDonald‘s basic earnings per share for 2013?

b) What is McDonald‘s diluted earnings per share for 2013?

14
15
16
17
18
19