Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

any questions marked with red are wrong just needed some help answering the whole thing. 14 Problem I-125 points) Acme Company was organized on January

any questions marked with red are wrong just needed some help answering the whole thing.
image text in transcribed
14 Problem I-125 points) Acme Company was organized on January 1, 2013 and is authorized to issue 1,000,000 shares of $1 par value common stock. The following transactions occurred during 2013 in the order listed. Required: Transaction Analysis (21 pts total) a. Indicate how each transaction affects TOTAL STOCKHOLDERS' EQUITY and RETAINED EARNINGS by writing the dollar amount of the increase or decrease. If there is no effect, write NO EFFECT. Indicate decreases with brackets. b. Indicate whether the transaction will be shown in the FINANCING SECTION of the Statement of Cash Flows. Transaction Description Impact on Total Impact on Retained Is the transaction Stockholders' Equity Earnings reported in the Dollar Amount Dollar Amount FINANCING Section of AND AND the Statement of Increase (Decrease) Increase (Decrease) Cash Flows? OR Yes or No No Effect No Effect Issued 200,000 shares of its own common stock for $5 per share. $1,000,000 no effect Issued 10,000 shares of its own common stock in exchange for a no machine with a fair market value of $50,000. no effect Purchased 20,000 shares of its own stock at $4 per share. The 20,000 shares are held as treasury stock Yes Declared a S1 per share cash dividend on common stock outstanding no effect / no Paid the dividend declared above. no Yes OF Yes 1150,000 (80.000) Toorool/ no effect no effect (190.000) no effect Strood effect 46,000 $25,000 125.000 Moeltech Purchased 100 shares of stock in an unrelated company as an investment at a price of $10 per share. Sold 5,000 shares of its treasury stock at $5 per share. No Ne c. Net income for 2013 amounted to $800,000. Calculate the following (2 pts each, total 4 points): Number of Common shares outstanding , 12/31/13 $195,000 Ending Retained Earnings balance at 12/31/133554,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

12th Canadian Edition

1260193276, 978-1260193275

More Books

Students also viewed these Accounting questions