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Identifying and Analyzing Financial Statement Effects of Stock Transactions Following is the stockholders equity of Sharp Corporation at the start of the current year. 8

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Identifying and Analyzing Financial Statement Effects of Stock Transactions
Following is the stockholders equity of Sharp Corporation at the start of the current year.
8% preferred stock, $50 par value, 10,000 shares authorized;
6,400 shares issued and outstanding $320,000
Common stock, $20 par value, 50,000 shares authorized;
20,000 shares issued and outstanding 400,000
Paid-in capital in excess of par valuepreferred stock 56,000
Paid-in capital in excess of par valuecommon stock 308,000
Retained earnings 190,400
Total stockholders equity $1,274,400
The following transactions, among others, occurred during the current year.
Jan. 15 Issued 800 shares of preferred stock for $60 cash per share.
Jan. 20 Issued 3,200 shares of common stock at $34 cash per share.
May. 18 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $10 per share. The number of shares authorized was increased to 80,000 shares.
June. 1 Issued 1,600 shares of common stock for $44,800 cash.
Sep. 1 Repurchased 2,000 shares of common stock at $16 cash per share.
Oct. 12 Sold 720 treasury shares at $19 cash per share.
Dec. 22 Issued 400 shares of preferred stock for $57 cash per share.
Required
Use the financial statement effects template to indicate the effects of each transaction.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Balance Sheet Income Statement
Transaction Cash
Asset + Noncash Assets = Liabilities + Contrib.
Capital + Earned
Revenues Expenses = Net
Income
Jan. 15 Answer
48,000
Answer
0
= Answer
0
Answer
40,000
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Preferred stock Answer
N/A
Answer
N/A
Answer
N/A
Answer
20,000
Answer
Additional Paid-in Capital-PS
Jan. 20 Answer
108,800
Answer
0
= Answer
0
Answer
108,800
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Common stock Answer
N/A
Answer
N/A
Answer
N/A
Answer
44,800
Answer
Additional Paid-in Capital-CS
May 18 Answer
0
Answer
0
= Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
N/A
Answer
N/A
Answer
N/A
Answer
N/A
Answer
N/A
Answer
N/A
Answer
N/A
June 1 Answer
44,800
Answer
0
= Answer
0
Answer
44,800
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Common stock Answer
N/A
Answer
N/A
Answer
N/A
Answer
0
Answer
Additional Paid-in Capital-CS
Sept. 1 Answer
(32,000)
Answer
0
= Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Answer
Additional Paid-in Capital-PS
Answer
N/A
Answer
N/A
Answer
N/A
Oct. 12 Answer
13,680
Answer
0
= Answer
0
Answer
2,160
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Treasury stock Answer
N/A
Answer
N/A
Answer
N/A
Answer
0
Answer
Additional Paid-in Capital-CS
Dec. 22 Answer
22,800
Answer
0
= Answer
0
Answer
22,800
Answer
0
Answer
0
Answer
0
= Answer
0
Answer
Cash
Answer
N/A
Answer
N/A
Preferred stock Answer
N/A
Answer
N/A
Answer
N/A
Answer
22,800
Answer
Additional Paid-in Capital-PS
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