identifying and analyzing financial statement effects of stock transactions 461450

Common stock, $5 par value, 350,000 shares authorized;
170,000 shares issued and outstanding

$850,000

Paid-in capital in excess of par value

600,000

Retained earnings

346,000

Jan. 5

Issued 10,000 shares of common stock for $11 cash per share.

Jan. 18

Purchased 4,000 shares of common stock for the treasury at $15 cash per share.

Mar. 12

Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share.

July 17

Sold 500 shares of the remaining treasury stock for $14 cash per share.

Oct. 1

Issued 5,000 shares of 8%, $24 par value preferred stock for $40 cash per share.
This is the first issuance of preferred shares from the 50,000 authorized shares.

Stockholders’ Equity

Paid-in capital:

8% Preferred stock, $24 par value,
50,000 shares authorized, 5,000
shares issued and outstanding:

Common stock, $5 par value, 350,000
shares authorized; 180,000 shares
issued:

Additional paid-in capital
Paid-in capital in excess of par
value-preferred stock:

Paid-in capital in excess of par
value-common stock:

Paid-in capital from treasury stock:

Total paid-in capital:

Retained earnings:

Less: Treasury stock (2,500 shares) at cost

:

Total Stockholders’ Equity: