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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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can you fix the Additional Paid-in Capital-PS and treasure stocks?

Transcribed Image Text:**Identifying and Analyzing Financial Statement Effects of Stock Transactions**
Melo Company reports the following transactions relating to its stock accounts in the current year. Use the financial statement effects template to indicate the effects from each of these transactions.
- **(a) Mar. 2:** Issued 16,000 shares of $1 par value common stock at $30 cash per share.
- **(b) Apr. 14:** Issued 24,000 shares of $100 par value, 8% preferred stock at $250 cash per share.
- **(c) June. 30:** Purchased 4,800 shares of its own common stock at $22 cash per share.
- **(d) Sep. 25:** Sold 2,400 shares of its treasury stock at $26 cash per share.
**Note:** For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
**Note:** Indicate a decrease in an account category by including a negative sign with the amount.
**Table: Financial Effects on Balance Sheet and Contributed Capital**
| Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contrib. Capital | + |
|---------------|------------|----|----------------|----|-------------|---|------------------|---|
| **(a) March 2** | 480,000 | ✓ | 0 | = | 0 | ✓ | 16,000 | ✓ |
| Cash | | | N/A | | N/A | | Common Stock | ✓ |
| | | | | | | | 464,000 | ✓ |
| | | | | | | | Additional Paid-in Capital-CS | ✓ |
| **(b) April 14** | 2,400,000 | ✗ | 0 | = | 0 | ✓ | 2,400,000 | ✓ |
| Cash | | | N/A | | N/A | | Preferred Stock | ✓ |
| | | | | | | | 480,000 | ✗ |
| | | | | |
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