Assume Dessert Corner, Inc., completed the following transactions during 2021, the companys 10th year of operations: Requirements
Question:
Assume Dessert Corner, Inc., completed the following transactions during 2021, the company’s 10th year of operations:
Requirements
1. Analyze each transaction in terms of its effect on the accounting equation of Dessert Corner.
2. What impact did each transaction have on cash flows?
Transcribed Image Text:
Feb 3 Mar 19 Apr 24 Aug 15 Sep 1 Nov 22 Issued 20,000 shares of common stock ($2.00 par) for cash of $520,000. Purchased 2,900 shares of the company's own common stock at $19 per share. Sold 2,500 shares of treasury common stock for $32 per share. Declared a cash dividend on the 16,000 shares of $0.20 no-par preferred stock. Paid the cash dividends. Declared and distributed a 15% stock dividend on the 95,000 shares of $2.00 par common stock outstanding. The market value of the common stock was $24 per share.
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Analysis of Transactions on Dessert Corners Accounting Equation Transaction 1 Issued 20000 shares of common stock 200 par for cash of 520000 The effec...View the full answer
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