Perry Corp. reports teh following transcations relating to its stock accounts in
ID: 2508822 • Letter: P
Question
Perry Corp. reports teh following transcations relating to its stock accounts in the current year.
Feb 3: Issued 40,000 shares of $5 per value common stock at $27 cash per share.
Feb 27: Issued 9,000 shares of $50 par value, 8% preffered stock at $88 cash per share.
March 31: Purchased 5,000 shares of its own common stock at $30 cash per share.
June 25: Sold 3,000 shares of its treasury stock at $38 cash per share.
July 15: Sold the remaining 2,000 shares of treasury stock at $29 cash per share.
Use the financial statement effects template to indicate the effects from each of these transactions.
Explanation / Answer
Answer:
1
Balance Sheet
Income Statement
Transaction
Cash
+
Noncash Assets
=
Liabil-
+
Contrib. Capital
+
Earned
Rev-
–
Expen-
=
Net
Asset
ities
Capital
enues
ses
Income
Feb. 3: Issued 40,000 shares of $5 par value common stock at $27 cash per share
1,080,000
=
200,000
–
=
Cash
Common
Stock
880,000
Additional
Paid-in
Capital
Feb. 27: Issued 9,000 shares of $50 par value 8% preferred stock at $88 cash per share
792,000
=
450,000
–
=
Cash
Preferred Stock
342,000
Add'l
Paid-in
Capital
Mar 31: Purchased 5,000 shares of common stock at $30 per share
–150,000
=
–150,000
–
=
Cash
Treasury
Stock
Jun 25: Sold 3,000 shares of treasury stock at $38 cash per share
114,000
=
90,000
–
=
Cash
Treasury
Stock
24,000
Additional
Paid-in
Capital
Jul 15: Sold 2,000 shares of treasury stock at $29 cash per share
58,000
=
60,000
–
=
Cash
Treasury
Stock
–2,000
Additional
Paid-in
Capital
Balance Sheet
Income Statement
Transaction
Cash
+
Noncash Assets
=
Liabil-
+
Contrib. Capital
+
Earned
Rev-
–
Expen-
=
Net
Asset
ities
Capital
enues
ses
Income
Feb. 3: Issued 40,000 shares of $5 par value common stock at $27 cash per share
1,080,000
=
200,000
–
=
Cash
Common
Stock
880,000
Additional
Paid-in
Capital
Feb. 27: Issued 9,000 shares of $50 par value 8% preferred stock at $88 cash per share
792,000
=
450,000
–
=
Cash
Preferred Stock
342,000
Add'l
Paid-in
Capital
Mar 31: Purchased 5,000 shares of common stock at $30 per share
–150,000
=
–150,000
–
=
Cash
Treasury
Stock
Jun 25: Sold 3,000 shares of treasury stock at $38 cash per share
114,000
=
90,000
–
=
Cash
Treasury
Stock
24,000
Additional
Paid-in
Capital
Jul 15: Sold 2,000 shares of treasury stock at $29 cash per share
58,000
=
60,000
–
=
Cash
Treasury
Stock
–2,000
Additional
Paid-in
Capital
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