Question
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%
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;
12,000 shares issued and outstanding
$600,000
Common stock, $20 par value, 50,000 shares authorized;
37,500 shares issued and outstanding
750,000
Paid-in capital in excess of par valuepreferred stock
105,000
Paid-in capital in excess of par valuecommon stock
577,500
Retained earnings
357,000
Total stockholders equity
$2,389,500
The following transactions, among others, occurred during the current year. Jan. 15 Issued 1,500 shares of preferred stock for $60 cash per share. Jan. 20 Issued 6,000 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 150,000 shares. June. 1 Issued 3,000 shares of common stock for $84,000 cash. Sep. 1 Repurchased 3,750 shares of common stock at $16 cash per share. Oct. 12 Sold 1,350 treasury shares at $19 cash per share. Dec. 22 Issued 750 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
Capital
Revenues
Expenses
=
Net
Income
Jan. 15
?
+
?
=
?
+
?
+
?
?
?
=
?
Jan. 20
?
+
?
=
?
+
?
+
?
?
-
?
=
?
May 18
?
+
?
=
?
+
?
+
?
?
?
=
?
June 1
?
+
?
=
?
+
?
+
?
?
?
=
?
Sept. 1
?
+
?
=
?
+
?
+
?
?
?
=
?
Oct 12
?
+
?
=
?
+
?
+
?
?
-
?
=
?
Dec 22
?
+
?
=
?
+
?
+
?
?
-
?
=
?
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; |
|
12,000 shares issued and outstanding | $600,000 |
Common stock, $20 par value, 50,000 shares authorized; |
|
37,500 shares issued and outstanding | 750,000 |
Paid-in capital in excess of par valuepreferred stock | 105,000 |
Paid-in capital in excess of par valuecommon stock | 577,500 |
Retained earnings | 357,000 |
Total stockholders equity | $2,389,500 |
The following transactions, among others, occurred during the current year. Jan. 15 Issued 1,500 shares of preferred stock for $60 cash per share. Jan. 20 Issued 6,000 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 150,000 shares. June. 1 Issued 3,000 shares of common stock for $84,000 cash. Sep. 1 Repurchased 3,750 shares of common stock at $16 cash per share. Oct. 12 Sold 1,350 treasury shares at $19 cash per share. Dec. 22 Issued 750 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 Capital | Revenues | Expenses | = | Net Income | |
Jan. 15 | ? | + | ? | = | ? | + | ? | + | ? | ? | ? | = | ? | |
Jan. 20 | ? | + | ? | = | ? | + | ? | + | ? | ? | - | ? | = | ? |
May 18 | ? | + | ? | = | ? | + | ? | + | ? | ? | ? | = | ? | |
June 1 | ? | + | ? | = | ? | + | ? | + | ? | ? | ? | = | ? | |
Sept. 1 | ? | + | ? | = | ? | + | ? | + | ? | ? | ? | = | ? | |
Oct 12 | ? | + | ? | = | ? | + | ? | + | ? | ? | - | ? | = | ? |
Dec 22 | ? | + | ? | = | ? | + | ? | + | ? | ? | - | ? | = | ? |
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
324663854, 978-0324663853
