QUESTION 46

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Issued 1,000 shrs. $100 par, 8% Preferred stock, for Land, when the stock was selling for $300/share

   		Increased the asset land $300,000, the stockholders' equity accounts preferred stock $200,000 and additional paid in capital-preferred $100,000.
   		Increased the asset cash $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital-preferred $200,000.
   		Increased the asset land $300,000, the stockholders' equity account preferred stock $300,000.
   		Increased the asset land $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital-preferred $200,000.

2 points

QUESTION 47

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Issued 10,000 shrs. $5 par, Common stock, for $25 Cash per share.

   		Increased the asset cash $250,000, the stockholders' equity accounts common stock $50,000 and retained earnings $200,000.
   		Increased the asset cash $250,000, the stockholders' equity accounts common stock $50,000 and additional paid in capital-common $200,000.
   		Increased the asset cash $250,000, the stockholders' equity account common stock $250,000.
   		Increased the asset cash $50,000, the stockholders' equity account common stock $50,000.

2 points

QUESTION 48

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Declared a $8/shr. Cash Dividend on the 1,000 shrs. of Pref. Sk. and $10/shr. On 10,000 shrs. of common stock.

   		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $108,000
   		Decrease the asset cash and the stockholders' equity retained earnings $108,000
   		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $100,000
   		Decrease the liability dividends payable and Increase the stockholders' equity retained earnings $108,000

2 points

QUESTION 49

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Paid cash to reacquire 1,000 shrs. of common stock for $30/shr.

   		Increased the asset cash $30,000, the stockholders' equity account treasury stock $30,000.
   		Decreased the asset cash $30,000, the stockholders' equity account treasury stock $30,000.
   		Decreased the asset cash $30,000, the stockholders' equity accounts common stock $5,000 and additional paid in capital-common $25,000.
   		Decreased the asset cash $30,000, and increased the stockholders' equity account treasury stock thereby decreasing total stockholders' equity $30,000.

2 points

QUESTION 50

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Paid the cash dividend declared in event above.

   		Increased the asset cash and decreased the liability dividends payable $108,000
   		Decreased the asset cash and Increased the liability dividends payable $108,000
   		Decreased the asset cash and increased dividends expense, thereby decreasing the stockholders' equity retained earnings $108,000
   		Decreased the asset cash and liability dividends payable $108,000

2 points

QUESTION 51

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Reissued the 1,000 shrs. acquired in event above, for $40/shr.

   		Increase the asset cash $40,000, stockholders' equity accounts common stock $5,000 and additional paid in capital-commom stock $35,000
   		Increase the asset cash $40,000, and stockholders' equity account additional paid in capital-treasury stock $10,000, increased the stockholders' equity account treasury stock $30,000 thereby increasing stockholders' equity
   		Increase the asset cash $40,000 and stockholders' equity accounts common stock $40,000
   		Increase the asset cash $40,000, and stockholders' equity account additional paid in capital-treasury stock $10,000, decreased the stockholders' equity account treasury stock $30,000 thereby increasing stockholders' equity

2 points

QUESTION 52

1. Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

   Issued 20,000 common shrs. and decreased the par value to $2.50/shr. As result of a 2 for 1 stock split.

   		Increased the asset cash $50,000 and the stockholders' equity account common stock $50,000
   		Has no effect on any of the balance sheet accounts
   		Increased the asset cash $100,000 and the stockholders' equity account common stock $100,000
   		Increased the asset cash $50,000 and the stockholders' equity account common stock $100,000 and decreased additional paid in capital-common $50,000.