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 transactio Note: Indicate a decrease in an account category by including a negative sign with the amount.
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 transactio Note: Indicate a decrease in an account category by including a negative sign with the amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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