contributed capital on october 1 2006 consisted of 50 000 issued and outstanding sha 541425

P8-38. Analyze and record stock transactions and prepare equity section of balance sheet. (LO 1,2, 3,4, s)

The following information pertains to All Batteries Company Inc.

L. Contributed capital on October 1,2006, consisted of 50,000 issued and outstanding shares of common stock with par value of $l; additional paid-in capital in excess of par of $250,000; and retained earnings of $400,000.

2. During the first quarter of the fiscal year, All Batteries Company issued an additional 20,000 shares of common stock for $8 per share.

3. On March 15, the company declared a2-for-1 stock split.

4. On June 30, the company distributed a 5Vo stock dividend. The market price of the stock on that date was $6 per share.

5. On July 1, the company declared a dividend of $0.50 per share to be paid on July 31.

6. During September 2007, All Batteries Company’s CEO decided the company should buy 600 shares of its own stock. At that time, the stock was trading for $7 per share.

7. Net income for the year ended September 30, 2007, was $87,500.

Required

a. Show each of the transactions in the accounting equation.

b. Prepare the shareholders equity section of the balance sheet at September 30, 2007.