Americana Inc. reported the following shareholders' equity account balances on January 1, 2014. The company entered into
Question:
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?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh