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.

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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Account Debited Credited Account Dollar Account Dollar Amount Number Amount Number Sold 30,000 shares of common stock for $63,000. State law requires a minimum of $1 stated value per share. Issued 10,000 shares of common stock to attorneys and accountants for services Jan. 19 310 $30,000 $63,000 312 $33,000 110 21 valued at $22,000 and provided during the organization of the согрoration. Issued 60,000 shares of common stock for a building that had an appraised value of S156,000. Purchased 20,000 shares of its Feb. 7 22 Mar. common stock at S3 per share. 15 Issued 10,000 shares of com- mon stock to employees under a stock option plan that allows any employee to buy shares at the current market price, which is now $3 per share. 1 Sold 5,000 shares of treasury stock for $4 per share. Declared a cash dividend of July Aug. Sept. 1 s0.15 per common share to be paid on September 25 to stockholders of record on September 15. Date of record for cash 15 dividends. 25 Paid cash dividends to Sept. stockholders of record on September 15. Issued 8,000 shares of com- mon stock for a piece of land. The stock was selling for $3 per share, and the land had a fair market value of $24,000. Oct. 30 15 Issued 4,400 shares of preferred stock for $50 per share. Dec.