Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 8, Problem 8.30P
Problem 8.30
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
Remember to consider appropriate effects of previous transactions.)
- Issued 6,000 shares of $100 par value
preferred stock at par. - Issued 7,200 shares of $100 par value preferred stock in exchange for land that had an appraised value of $756,000.
- Issued 68,000 shares of $5 par value common stock for $12 per share.
- Purchased 28,000 shares of common stock for the treasury at $15 per share.
- Sold 18,000 shares of the
treasury stock purchased in transaction d for $17 per share. - Declared a cash dividend of $2.50 per share on the preferred stock outstanding, to be paid early next year.
- Declared and issued a 12% stock dividend on the common stock when the market price per share of common stock was $30.
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Quiz Module 1
Some of the following accounts may appear on more than one statement. Would you please tell me what statement or statements they are on?
1) Net Income
2) End-of-period retained earnings balance
3) Net decrease in cash
4) End-of-period cash balance
5) Dividends payable
6) Retained Earnings 1/1
For the following could you please list the statment and if it is a real or nominal account?
1) Interest income
2) Bonds payable
3) Prepaid Insurance
4) Supplies on hand
Question 7
What is the impact on the accounting equation when an accounts
receivable is collected?
O both sides increase
O both sides decrease
O only the Asset side changes
O the total of neither side changes
Chapter 8 Solutions
Accounting: What the Numbers Mean
Ch. 8 - Prob. 8.1MECh. 8 - Mini-Exercise 8.2 LO 2 Preferred stock-calculate...Ch. 8 - Prob. 8.3MECh. 8 - Mini-Exercise 8.4 LO 6 Treasury stock transactions...Ch. 8 - Prob. 8.5ECh. 8 - Exercise 8.6 Review exercise-calculate net income...Ch. 8 - Prob. 8.7ECh. 8 - Exercise 8.8 Review exercise-calculate retained...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10E
Ch. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Exercise 8.15 LO 3 Dividend dates-market price...Ch. 8 - Exercise 8.16 LO 3 Ex-dividend date-market price...Ch. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Problem 8.28 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.29 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.30 LO 1. 2, 4, 6 Transaction...Ch. 8 - Prob. 8.31PCh. 8 - Prob. 8.32PCh. 8 - Prob. 8.33CCh. 8 - Prob. 8.34CCh. 8 - Prob. 8.35CCh. 8 - Case 8.36 LO 1, 2, 7 Capstone analytical review of...
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- question b: (...) amount in accounts receivable?arrow_forwardIdentify how each of the following separate transactions through 10 affects financial statements. For increases, place a "i" and the dollar amount in the column or columns. For decreases, place a"- and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required: a. For the balance sheet, identify how each transaction affects total essets, total abilities, and total equity For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing activities, and cash flows from Snancing activities. Transaction 1. Owner invest $300 cash in business in exchange for vock 2 Rives $700 cash for services provided 3 Pays $500 cash for employee wages & Buys $100 of equipment on cred 5 Purchases $200 af supplies on credit &…arrow_forwardPlease calculate 1. Accounts receivable collection period 2. Return on equityarrow_forward
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