1

Show how each of the following transactions affects the accounting equation: March 1 April 1 June 30 Issued 75,000 shares of $0.02 par value common stock for cash of $99,750 Issued 1,000 shares of $95 par value preferred stock for cash at $115 per share Purchased 1,000 shares of treasury stock for $3.00 per share i.e., the company bought its own common stock in the stock market) Show how each transaction would affect the accounting equation. Some of the account names will be abbreviated. March 1: Issued 75,000 shares of $0.02 par value common stock for cash of $99,750 (Use parentheses or a minus sign when entering component decreases or contra account increases. Use only the necessary input lines.) Assets Account Liabilities Account Shareholders' Equity Contributed Capital + Retained Earnings $ Account Account $ April 1: Issued 1,000 shares of $95 par value preferred stock for cash at $115 per share (Use parentheses or a minus sign when entering component decreases or contra account increases. Use only the necessary input lines.) = Assets Account Liabilities Account Shareholders' Equity Contributed Capital + Retained Earnings Account Account June 30: Purchased 1,000 shares of treasury stock for $3.00 per share i.e., the company bought its own common stock in the stock market) (Use parentheses or a minus sign when entering component decreases or contra account increases. Use only the necessary input lines.) Liabilities Assets Account Shareholders' Equity Contributed Capital + Retained Earnings Account Account Account