Americana Inc. reported the following shareholders' equity account balances on January 1, 2014. The company entered into

Question:

Americana Inc. reported the following shareholders' equity account balances on January 1, 2014.

The company entered into the following transactions during 2014.
Jna.15 ........... Issued 5,000 common shares for $50,000 cash.
Feb.15 ........... Reacquired and cancelled 3,000 common shares for $33,000 cash.
Mar. 15 .......... Issued 2,000 common shares for $24,000 cash.
Aug. 15 .......... Issued 600 common shares for $4,600 cash.
Sept. 15 ........ Declared (but did not yet pay) a $1 cash dividend on each outstanding common shares.
Oct. 1 ........... Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.
Required:
1. Analyze the effects of each transaction on total assets, liabilities, and shareholders' equity.
2. Prepare journal entries to record each transaction.
3. Prepare the noncurrent liabilities and shareholders' equity sections of the balance sheet at December 31, 2014. At the end of 2014, the accounts reflected net income of $20,000?

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