Using the Column Headings Provided Below, Show the Effect, If

question 4

Essay

Using the column headings provided below, show the effect, if any, of the transaction on each financial statement category by indicating whether it is an addition (+) or subtraction (-) and by showing the amount in the appropriate column. For the treasury stock column, show the effects, if any, of the transaction on total stockholders' equity. Do not show items that affect net income in the retained earnings column. You should assume that the transactions occurred in the chronological sequence as indicated.
(1.) Issued 1,200 shares of $60 par value preferred stock in exchange for land and an existing building that had appraised values of $35,000 and $50,000, respectively.
(2.) Issued 30,000 shares of $10 par value common stock for $24 per share.
(3.) Purchased 1,000 shares of common stock for the treasury at $25 per share.
(4.) Sold 600 shares of the treasury stock purchased in transaction #3 for $30 per share.
(5.) Declared a cash dividend of $1.40 per share on the common stock outstanding, to be paid early next year.
(6.) Split the common stock 2-for-1. $$\begin{array} { | l | l | l | l | l | l | l | l | } \hline & \text { Cash } & \begin{array} { c } \text { Other } \\\text { Assets }\end{array} & \text { Liabilities } & \begin{array} { c } \text { Paid-in } \\\text { Capital }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} & \begin{array} { c } \text { Treasury } \\\text { Stock }\end{array} & \begin{array} { c } \text { Net } \\\text { Income }\end{array} \\\hline \text { 1. } & & & & & & & \\\hline \text { 2. } & & & & & & & \\\hline \text { 3. } & & & & & & & \\\hline \text { 4. } & & & & & & & \\\hline 5 . & & & & & & & \\\hline \text { 6. } & & & & & & & \\\hline\end{array}$$

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Definitions:

Proximal Convoluted Tubule

The part of the renal tubule that extends from Bowman’s capsule to the loop of Henle. Compare with distal convoluted tubule.

Partially Reabsorbed

The process by which a substance, once secreted or excreted, is taken back into the body or a biological system, often referring to fluids or nutrients.

Sodium Ions

Positively charged ions of sodium, essential for conducting nerve impulses, muscle contraction, and maintaining fluid balance in the body.

Filtrate

The liquid that passes through a filter, separating it from suspended solids.