On the first day of the fiscal year, Music Productions Corporation had 210,000 shares of $ 2.00 par common stock issued and outstanding, and the retained earnings balance was $ 900,000.
ACCOUNT NAMES: APIC Cash Common stock Dividends Div. pay. PIC TS RE Treasury stock Show how each transaction would affect the accounting equation. Some of the account names will be abbreviated 1. Issued 5,000 additional shares of common stock for $10.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 2. Declared and distributed a 5% stock dividend when the market price was $10.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital + Retained Earnings Account Account Account Account 3. Issued 15,000 additional shares of common stock for $12.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 4. Declared a cash dividend on outstanding shares of $1.30 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 5. Paid the dividend declared in item (4). (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 6. Purchased 5,000 shares of treasury stock for $14.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 7. Sold 2,000 shares of treasury stock for $16.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 8. Sold 2,500 shares of treasury stock for $15.00 per share. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account 9. Declared 2-for-1 stock split. (Use parentheses or a minus sign when entering component decreases or contra account increases. If a transaction has no affect on the accounting equation, leave the equation blank. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital+ Retained Earnings Account Account Account Account
