Transaction Analysis / Balance Sheet

8.26 - 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 listed chronological sequence and that no stock had been previously issued. ( Hint: Remember to consider appropriate effects of previous transactions.)
a. Issued 1,500 shares of $ 100 par value preferred stock at par.
b. Issued 2,400 shares of $ 100 par value preferred stock in exchange for land that had an appraised value of $ 306,000.
c. Issued 69,000 shares of $ 5 par value common stock for $ 11 per share.
d. Purchased 13,500 shares of common stock for the treasury at $ 13 per share.
e. Sold 6,000 shares of the treasury stock purchased in transaction d for $ 14 per share.
f. Declared a cash dividend of $ 1.75 per share on the preferred stock outstanding, to be paid early next year.
g. Declared and issued a 5% stock dividend on the common stock when the market price per share of common stock was $ 15.

9.26 - Complete balance sheet and prepare a statement of changes in retained earnings Following is a statement of cash flows ( indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31, 2011 and 2010:

Cash Flows from Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . $ 9,000
Add ( deduct) items not affecting cash:
Depreciation expense . . . . . . . . . . . . . . . . . . 45,000
Decrease in accounts receivable. . . . . . . . . . . . . 23,000
Increase in inventory . . . . . . . . . . . . . . . . . ( 7,000)
Increase in notes payable . . . . . . . . . . . . . . . 12,000
Decrease in accounts payable. . . . . . . . . . . . . . ( 6,000)
Net cash provided by operating activities . . . . . . . $ 76,000

Cash Flows from Investing Activities:
Purchase of equipment. . . . . . . . . . . . . . . . . $( 50,000) Purchase of buildings . . . . . . . . . . . . . . . . . ( 48,000)
Net cash used by investing activities . . . . . . . . $( 98,000)

Cash Flows from Financing Activities:
Proceeds from short- term debt... . . . . . . . . . . . . 5,000
Cash used for retirement of long- term debt . . . . . . $( 25,000) Proceeds from issuance of common stock . . . . . . . . . . 10,000
Payment of cash dividends on common stock . . . . . . . ( 3,000)
Net cash used by financing activities . . . . . . . . . $( 13,000)
Net decrease in cash for the year . . . . . . . . . . . $( 35,000)

HARTFORD, INC. Comparative Balance Sheets At December 31, 2011 and 2010

Assets 2011 2010 Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ $ 88,000 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . 73,000 Inventory... . . . . . . . . . . . . . . . . . . . . . .56,000
Total current assets . . . . . . . . . . . . . . . . . $ $ Land . . . . . . . . . . . . . . . . . . . . . . . . . $ $ 40,000 Buildings and equipment . . . . . . . . . . . . . . . . 260,000
Less: Accumulated depreciation . . . . . . . . . . . . . . .. (123,000) Total land, buildings, and equipment . . . . . . . . . $ $
Total assets . . . . . . . . . . . . . . . . . . . . . $ $

Liabilities
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . $ $ 29,000 Short- term debt . . . . . . . . . . . . . . . . . . . 32,000
Notes payable .......... . . . . . . . . . . . . . . . . . . . . . 36,000 Total current liabilities . . . . . . . . . . . . . . $ $
Long- term debt . . . . . . . . . . . . . . . . . . . $ 85,000 $

Owners' Equity
Common stock . . . . . . . . . . . . . ...............$ 40,000 $ Retained earnings . . . . . . . . . . . . . . . . . . .$ $
Total owners' equity . . . . . . . . . . . . . . . . . $ $
Total liabilities and owners' equity . . . . . . . . . $ $