FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, 2019, Metco Inc. reported 268,000 shares of $5 par value common stock as being issued and outstanding.
On March 24, 2019, Metco Inc. purchased for its treasury 2,500 shares of its common stock at a price of $39.00 per share.
On August 19, 2019, 750 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash
dividends of $0.40 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019,
and December 31, 2019, respectively. A 3% stock dividend was issued at the end of the year. There were no other
transactions affecting common stock during the year.
c-1. Use the horizontal model for the sale of the treasury stock on August 19, 2019. Indicate the financial statement effect. (Enter
decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expense
+
IL ||
+ +
II
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Transcribed Image Text:Check my work ! Required information [The following information applies to the questions displayed below.] On January 1, 2019, Metco Inc. reported 268,000 shares of $5 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,500 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 750 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.40 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 3% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. c-1. Use the horizontal model for the sale of the treasury stock on August 19, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expense + IL || + + II
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