Question

Use the data from E8-34A to prepare the shareholders’ equity section of the balance sheet at year end. Net income for the year was $150,000.
In E8-34A On the first day of the fiscal year, Music Productions Corporation had 210,000 shares of $2 par common stock issued (at par) and outstanding, and the retained earnings balance was $900,000. Show how each of the following transactions would affect the accounting equation:
1. Issued 5,000 additional shares of common stock for $10 per share
2. Declared and distributed a 5% stock dividend when the market price was $10 per share
3. Issued 15,000 additional shares of common stock for $12 per share
4. Declared a cash dividend on outstanding shares of $1.30 per share
5. Paid the dividend declared in item (4)
6. Purchased 5,000 shares of treasury stock for $14 per share
7. Sold 2,000 shares of treasury stock for $16 per share
8. Sold 2,500 shares of treasury stock for $15 per share
9. Declared 2-for-1 stock split



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  • CreatedSeptember 01, 2014
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