Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 2

Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:

Enter the transaction letter in the first column and show the effect (if any) of each of the following transactions on each financial statement category by entering a plus (+) or minus (?) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You may also write the entries to record each transaction.
a. Sold 8,200 shares of $50 par value 7% preferred stock at par.
b. Declared the annual dividend on the preferred stock.
c. Purchased 1,300 shares of preferred stock for the treasury at $54 per share.
d. Issued 4,000 shares of $1 par value common stock in exchange for land valued at $226,000.
e. Sold 600 shares of the treasury stock purchased in transaction c for $58 per share.
f. Split the common stock 2 for 1.