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Perry Corp. reports teh following transcations relating to its stock accounts in the current year. Feb...

Perry Corp. reports teh following transcations relating to its stock accounts in the current year.

Feb 3: Issued 40,000 shares of $5 per value common stock at $27 cash per share.

Feb 27: Issued 9,000 shares of $50 par value, 8% preffered stock at $88 cash per share.

March 31: Purchased 5,000 shares of its own common stock at $30 cash per share.

June 25: Sold 3,000 shares of its treasury stock at $38 cash per share.

July 15: Sold the remaining 2,000 shares of treasury stock at $29 cash per share.

Use the financial statement effects template to indicate the effects from each of these transactions.

Solutions

Expert Solution

1

Balance Sheet

Income Statement

Transaction

Cash

+

Noncash Assets

=

Liabil-

+

Contrib. Capital

+

Earned

Rev-

–

Expen-

=

Net

Asset

ities

Capital

enues

ses

Income

Feb. 3: Issued 40,000 shares of $5 par value common stock at $27 cash per share

1,080,000

=

200,000

–

=

Cash

Common

Stock

880,000

Additional

Paid-in

Capital

Feb. 27: Issued 9,000 shares of $50 par value 8% preferred stock at $88 cash per share

792,000

=

450,000

–

=

Cash

Preferred Stock

342,000

Add'l

Paid-in

Capital

Mar 31: Purchased 5,000 shares of common stock at $30 per share

–150,000

=

–150,000

–

=

Cash

Treasury

Stock

Jun 25: Sold 3,000 shares of treasury stock at $38 cash per share

114,000

=

90,000

–

=

Cash

Treasury

Stock

24,000

Additional

Paid-in

Capital

Jul 15: Sold 2,000 shares of treasury stock at $29 cash per share

58,000

=

60,000

–

=

Cash

Treasury

Stock

–2,000

Additional

Paid-in

Capital

ekkarill92 answered 1 year ago
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