Question: Enter the following column headings across the
Enter the following column headings across the top of a sheet of paper:
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 retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the listed chronological sequence and that no stock had been previously issued. (Hint: Remember to consider appropriate effects of previous transactions.)
a. Issued 1,500 shares of $100 par value preferred stock at par.
b. Issued 2,400 shares of $100 par value preferred stock in exchange for land that had an appraised value of $306,000.
c. Issued 69,000 shares of $5 par value common stock for $11 per share.
d. Purchased 13,500 shares of common stock for the treasury at $13 per share.
e. Sold 6,000 shares of the treasury stock purchased in transaction d for $14 per share.
f. Declared a cash dividend of $1.75 per share on the preferred stock outstanding, to be paid early next year.
g. Declared and issued a 5% stock dividend on the common stock when the market price per share of common stock was $15.
Transcribed Image Text:
Other Paid-In Retained Treasury Net Transaction Cash Assets Liabilities Capital Earnings Stock Income
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> Enter the following column headings across the top of a sheet of paper: Enter the transaction / situation letter in the first column and show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or o
> Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the a
> Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the a
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> The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Sh
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> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco
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> Enter the following column headings across the top of a sheet of paper: 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 m
> Enter the following column headings across the top of a sheet of paper: 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 m
> Enter the following column headings across the top of a sheet of paper: 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 m
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> Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income b
> Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on th
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