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.
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.
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.