Problem 8.29
LO 1, 2, 4, 6
Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:
Other | Paid-In | Retained | Treasury | Net |
Transaction Cash Assets | Liabilities Capital | Earnings | Stock | Income |
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
- Sold 10,000 previously unissued shares of $1 par value common stock for $18 per share.
- Issued 2,000 shares of previously unissued 8% cumulative
preferred stock , $40 par value, in exchange for land and a building appraised at $80,000. - Declared and paid the annual cash dividend on the preferred stock issued in transaction b.
- Purchased 500 shares of common stock for the treasury at a total cost of $9,500.
- Declared a cash dividend of $0.15 per share on the common stock outstanding.
- Sold 260 shares of the
treasury stock purchased in transaction d at a price of $20 per share. - Declared and issued a 3% stock dividend on the common stock issued when the market value per share of common stock was $21.
- Split the common stock 3 for 1.
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Accounting: What the Numbers Mean
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