The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31, 2018: On January 5, 2019, FIFA purchased and retired 2 million shares for $9 million. Immediately after retirement of the shares, the balances in the paid-in capital-excess of par and retained earnings accounts are:

Question

The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31, 2018:  On January 5, 2019, FIFA purchased and retired 2 million shares for $9 million. Immediately after retirement of the shares, the balances in the paid-in capital-excess of par and retained earnings accounts are:

Quizplus · Accepted Answer

Common stock is debited for $2 ($1par × 2M); Paid-in capital-excess of par is debited for $12
($6/share × 2M); Cash is credited for $18; Retained earnings is debited for $4 (plug) [all amounts in millions, unless otherwise specified].

The Balance Sheet of FIFA Cup Company Included the Following