Explore BrainMass

Explore BrainMass

    Balance sheet and Accounting for equity transactions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Using the Balance sheet dated 12/31/2012, record the transactions that happened during 2013 and complete a Balance sheet dated 12/31/2013. You must list any new assets and liabilities, but can keep the same amounts from the balance sheet dated 12/31/2012. Assume that the net income number includes all necessary revenues and expenses and that it ends up as cash.

    2013 transactions:
    a. Issued 1,000 shares of preferred stock in exchange for equipment
    b. Sold 30,000 shares of common stock for $15/share
    c. Purchased 5,000 shares of treasury stock for $20/share
    d. Issued 2,000 shares of common stock in exchange for a new truck
    e. Sold 7,000 shares of treasury stock for $30/share
    f. Declared annual dividend of .60/common share to be paid on Jan 14, 2014
    g. Jan 1 to Dec 31, 2013 net income was $850,000

    Please see the attached image for the balance sheet.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:47 am ad1c9bdddf
    https://brainmass.com/business/financial-statements/balance-sheet-accounting-equity-transactions-534345

    Attachments

    Solution Summary

    Using the Balance sheet dated 12/31/2012, we recorded the transactions that happened during 2013 and completed a Balance sheet dated 12/31/2013.

    $2.19

    ADVERTISEMENT