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Tractor Corporation was just formed. The following accounts of Tractor Corporation, with code letters, are needed to record the transactions given below. Required: In the
Tractor Corporation was just formed. The following accounts of Tractor Corporation, with code letters, are needed to record the transactions given below. Required:
In the answer worksheet file provided in Question 1, complete the table below. Indicate code letters and the correct amounts for each transaction, as shown in the example given.
A | Cash | G | Bonds payable |
B | Remaining assets | H | Preferred shares |
C | Retained earnings | I | Treasury stock |
D | Common shares | J | Other accounts not listed |
E | Dividends payable | K | Dividends declared |
F | Trade payables | L | No entry needed |
Transaction | Debits | Credits | |||
Code | Amount | Code | Amount | ||
Ex. | Sold and issued 10 common shares for $200. Disregard in subsequent transaction. | A | 200 | D | 200 |
1 | Sold and issued 5,000 common shares at $26 per share | ||||
2 | Issued a 10% share dividend when the shares were selling at $30 per share | ||||
3 | Declared a cash dividend of $1 per share on the shares outstanding | ||||
4 | Paid the cash dividend of $1 per share declared earlier (see above) | ||||
5 | Purchased 100 treasury shares at $27 per share | ||||
6 | Issued a 2-for-1 share split when the market price was $20 per share |
Once completed, remember to upload the link to your full Answer Worksheet file in the answer box below.
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