Identifying and Analyzing Financial Statement Effects of Stock Issuance and Repurchase (FSET)

On January 1, Bartov Company issues 3,000 shares of $100 par value preferred stock at $250 cash per share. On March 1, the company repurchases 3,000 shares of previously issued $1 par value common stock at $78 cash per share. Using the financial statement effects template, illustrate the effects of these two transactions.

NOTE: Use negative signs with your answers, when appropriate.

NOTE: Select "N/A" as your answer if a part of the accounting equation is not affected.

	Balance Sheet														Income Statement
	Cash		Noncash				Contributed		Earned		Contra								Net
Transaction	Asset	+	Assets	=	Liabilities	+	Capital	+	Capital	-	Equity				Revenue	-	Expenses	=	Income
i. Preferred stock issuance.	Answer		Answer				Answer				Answer
	AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A				Preferred stock				AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A
							Answer
							AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A
ii. Common stock repurchase.	Answer		Answer				Answer				Answer
	AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A				AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A				AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A