Question 1: Transaction analysis various accounts Enter the following column headings across the top of a sheet of paper:
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Transaction
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Cash
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Other Assets
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Liabilities
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Paid-in Capital
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Retained Earnings
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Treasury Stock
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Net Income
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Enter the transaction letter in the first column and show the effect (if any) of each of the following transactions on each financial statement category by entering a plus (+) or minus ( ) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the same chronological sequence as listed here:
a. Sold 1,700 shares of $50 par value preferred stock at $52.50 per share.
b. Declared the annual cash dividend of $4.10 per share on common stock. There were 9,300 shares of $1 par value common stock issued and outstanding throughout the year.
c. Issued 2,500 shares of $50 par value preferred stock in exchange for a building when the market price of preferred stock was $54 per share.
d. Purchased 700 shares of preferred stock for the treasury at a price of $56 per share.
e. Sold 250 shares of the preferred stock held in treasury (see d ) for $57 per share.
f. Declared and issued a 15% stock dividend on the $1 par value common stock when the market price per share was $36.
Question 2: Transaction analysis various accounts Enter the following column headings across the top of a sheet of paper:
|
Transaction
|
Cash
|
Other Assets
|
Liabilities
|
Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
Net Income
|
Enter the transaction letter in the first column and show the effect (if any) of each of the following transactions on each financial statement category by entering a plus (1) or minus ( ) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the listed chronological sequence and that no stock had been previously issued. (Hint: Remember to consider appropriate effects of previous transactions.)
a. Issued 3,000 shares of $100 par value preferred stock at par.
b. Issued 4,800 shares of $100 par value preferred stock in exchange for land that had an appraised value of $612,000.
c. Issued 34,000 shares of $5 par value common stock for $24 per share.
d. Purchased 14,000 shares of common stock for the treasury at $27 per share.
e. Sold 9,000 shares of the treasury stock purchased in transaction d for $29 per share.
f. Declared a cash dividend of $3.50 per share on the preferred stock outstanding, to be paid early next year.
g. Declared and issued a 12% stock dividend on the common stock when the market price per share of common stock was $30.