Impact of transactions on accounting equation
Not what you're looking for?
Using the column headings provided below, show the effect, if any, of the transaction on each financial statement category by indicating whether it is an addition (+) or subtraction (-) and showing the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You should assume that the transactions occurred in the chronological sequence as indicated.
(1.) Issued 300 shares of $90 par value preferred stock in exchange for land that had an appraised value of $32,000.
(2.) Issued 17,500 shares of $20 par value common stock for $24 per share.
(3.) Purchased 3,800 shares of common stock for the treasury at $20 per share.
(4.) Sold 2,500 shares of treasury stock purchased in transaction #3 for $22 per share.
(5.) Declared a cash dividend of $2.80 per share on the common stock outstanding, to be paid early next year.
(6.) Declared and issued a 5 percent stock dividend on the common stock when the market price per share of common stock was $20.
Cash Other Assets Liabilities Paid-In Capital Retained Earnings Treasury Stock Net Income
1.
2.
3.
4.
5.
6.
Purchase this Solution
Solution Summary
The solution explains the impact of the given transactions on accounting equation
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Motivation
This tests some key elements of major motivation theories.