A department store chain has two classes of stock authorize: $100 par preferred and $1 par common. As of the beginning of the year, 1,000 shares of common stock and no preferred shares have been issued. The following transactions affect stockholders' equity during the year. January 15: Issue 2,000 additional shares of common stock for $20 per share. February 1: Issue 100 shares of preferred stock for $110 per share. Declare a cash dividend of $5 per share on preferred share on preferred stock and $1 per share on common stock to all stockholders of record on June 15. June 1: June 30: Pay the cash dividend declared on June 1. October 1: Purchase 200 shares of treasury stock for $25 per share. November 1: Resell 100 shares of the treasury stock purchased on October 1 for $28 per share. Required: a. Record each transaction. b. Indicate whether each transaction increases (+), decreases (-), or has no effect (NE), on total assets, total liabilities, and total stockholders' equity.

A department store chain has two classes of stock authorize: $100 par preferred and $1 par common. As of the beginning of the year, 1,000 shares of common stock and no preferred shares have been issued. The following transactions affect stockholders' equity during the year. January 15: Issue 2,000 additional shares of common stock for $20 per share. February 1: Issue 100 shares of preferred stock for $110 per share. Declare a cash dividend of $5 per share on preferred share on preferred stock and $1 per share on common stock to all stockholders of record on June 15. June 1: June 30: Pay the cash dividend declared on June 1. October 1: Purchase 200 shares of treasury stock for $25 per share. November 1: Resell 100 shares of the treasury stock purchased on October 1 for $28 per share. Required: a. Record each transaction. b. Indicate whether each transaction increases (+), decreases (-), or has no effect (NE), on total assets, total liabilities, and total stockholders' equity.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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