The 12/31/2018 balance sheet of Home Depot Inc. included the following: Common stock, 25 million shares at $20 par$500million Paid-in capital—excess of par 3,000million Retained earnings 980million In January 2018, Home Depot recorded a transaction with this journal entry: Cash150million Common stock 100 million Paid-in capital—excess of par 50 million The transaction was for the: a. Issue of 2 million shares of common stock at parb. Issue of common stock for $150 million in cashc. Receipt of $20 per share for a new stock issued.All of these answer choices are correct

Journal entry is a record of financial transaction in the books of accounts of an organization. It…

Answered: The 12/31/2018 balance sheet of Home…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The 12/31/2018 balance sheet of Home Depot Inc. included the following:


Common stock, 25 million shares at $20 par	$	500	million
Paid-in capital—excess of par		3,000	million
Retained earnings		980	million

In January 2018, Home Depot recorded a transaction with this journal entry:


Cash	150	million
Common stock			100	million
Paid-in capital—excess of par			50	million

The transaction was for the:

a. Issue of 2 million shares of common stock at par

b. Issue of common stock for $150 million in cash

c. Receipt of $20 per share for a new stock issue

d.All of these answer choices are correct

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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