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When Bouncy Corporation was formed on January 2 2019, the corporate charter authorized the issuance of 5.000.000 shares of common stock carrying a $1 par
When Bouncy Corporation was formed on January 2 2019, the corporate charter authorized the issuance of 5.000.000 shares of common stock carrying a $1 par value and 1,000,000 shares of $5 par value, cumulative, nonparticipating preferred stock On January 5, 2020, 3,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also, on January 2, all 1,000,000 shares of preferred stock are issued at $20 per share During 2020, the Bouncy Corporation participated in three treasury stock transactions a On February 20, 2020, the corporation reacquires 200.000 shares for the treasury at a price of $12 per share b. On March 10, 2020. 50.000 treasury shares are reissued at $15 per share c. On March 18, 2020,40,000 treasury shares are reissued at $10 per share. On March 30, 2020, the Bouncy Corporation declares a $.05 per share cash dividend on common stock and a 3.25 per share cash dividend on preferred stock. Payment is scheduled for June 1, 2016, to shareholders of record on May 15, 2020. Part B: Ater understanding the problem above and why those entries and statement were prepared as they were indicate by letter whether each of the transactions listed below increases in decreases (D) or has no effect on the three equity accounts shown in the table Assume the shareholders' equity of Bouncy Company includes only common stock, paid in capital e s of par, and retained earnings at the time of each transaction Transactions Commo Additiona Retaine PRC a. Sale of common stock at greater than par Purchase of treasury stock at a cost less than the original d: Purchase of treasury stock at a cost greater than the original issue price Declaration of a property dividend Sale of treasury stock for more than cost Sale of reasury stock for less than cost Closing out of net income for the year Declaration of a cash dividend Payment of a previously declared cash dividend bends for cash Declaration and debution of a 5 stock dividend c h an the original Retirement of common to sue price Retirement of common originale price at a cost greater than the A stock spielected in the form of a stock dividend An even change of common for equipment attir
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