Question

In January 2014, Imperial Corporation was organized and authorized to issue 4,000,000 shares of no-par common stock and 100,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transactions for the first year’s operations follow.

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Required
1. For each of these transactions, provided the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credited using the account numbers that follow
110 Cash
120 Land
121 Building
220 Dividends Payable
305 Preferred Stock
310 Common Stock
312 Additional Paid-in Capital
313 Paid-in Capital, Treasury Stock
340 Retained Earnings
341 Dividends
350 Treasury Stock, Common
510 Start-up and Organization Costs
2. Why is the stockholders’ equity section of the balance sheet an important consideration in analyzing the performance of a company?



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  • CreatedMarch 26, 2014
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