American Laser, Inc., reported the following account balances on January 1, 2013.
Accounts Receivable .......................................... $ 15,000
Accumulated Depreciation ..................................... 30,000
Additional Paid-in Capital ..................................... 90,000
Allowance for Doubtful Accounts .............................. 2,000
Bonds Payable .......................................................... 0
Buildings ........................................................ 100,000
Common Stock, 10,000 shares of $1 par ..................... 10,000
Notes Payable (due 2016) ...................................... 10,000
Retained Earnings ............................................. 120,000
Treasury Stock ......................................................... 0
The company entered into the following transactions during 2013.
Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash.
Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash.
Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash.
Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash.
Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.
Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.
Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.
Dec. 31 Recorded $10,000 depreciation on the building.
Required:
1. Analyze the effects of each transaction on total assets, liabilities, and stockholders' equity.
2. Prepare journal entries to record each transaction.
3. Prepare the noncurrent liabilities and stockholders' equity sections of the balance sheet at December 31, 2013. At the end of 2013, the adjusted net income was $20,000?