Refer to the following transactions. Sold 2,410 shares of $9.5 par value preferr

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Refer to the following transactions. Sold 2,410 shares of $9.5 par value preferred stock at $14.00 per share. Declared the annual cash dividend of $3.1 per share on common stock. There were 9,100 shares of $1 par value common stock issued and outstanding throughout the year. Issued 2,300 shares of $10 par value preferred stock in exchange for a building when the market price of preferred stock was $13.5 per share. Purchased 120 shares of preferred stock for the treasury at a price of $11.00 per share. Sold 90 shares of the preferred stock held in treasury (see d) for $19.5 per share. Declared and issued a 14% stock dividend on the $1 par value common stock when the market price per share was $36.
Required: Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus (–) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. Refer to the following transactions. Sold 2,410 shares of $9.5 par value preferred stock at $14.00 per share. Declared the annual cash dividend of $3.1 per share on common stock. There were 9,100 shares of $1 par value common stock issued and outstanding throughout the year. Issued 2,300 shares of $10 par value preferred stock in exchange for a building when the market price of preferred stock was $13.5 per share. Purchased 120 shares of preferred stock for the treasury at a price of $11.00 per share. Sold 90 shares of the preferred stock held in treasury (see d) for $19.5 per share. Declared and issued a 14% stock dividend on the $1 par value common stock when the market price per share was $36.
Required: Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus (–) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. Refer to the following transactions. Sold 2,410 shares of $9.5 par value preferred stock at $14.00 per share. Declared the annual cash dividend of $3.1 per share on common stock. There were 9,100 shares of $1 par value common stock issued and outstanding throughout the year. Issued 2,300 shares of $10 par value preferred stock in exchange for a building when the market price of preferred stock was $13.5 per share. Purchased 120 shares of preferred stock for the treasury at a price of $11.00 per share. Sold 90 shares of the preferred stock held in treasury (see d) for $19.5 per share. Declared and issued a 14% stock dividend on the $1 par value common stock when the market price per share was $36.
Required: Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus (–) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column.

Explanation / Answer

The effect of each of the above transaction is shown as below:

Transaction Cash Other Assets Liabilities Paid-in Capital Retained Earnings Treasury Stock Net Income a +33,740 (2,410*14) +33,740 b +28,210 (9,100*3.10) -28,210 c +31,050 (2,300*13.50) +31,050 d -1,320 (120*11) +1,320 e +1,755 (90*19.50) +765 [90*(19.5 - 11)] -990 (90*11) f +45,864 (9,100*14%*36) -45,864

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