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

question 13

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 300 shares of $90 par value preferred stock in exchange for land that had an appraised value of $32,000.
(2.) Issued 17,500 shares of $20 par value common stock for $24 per share.
(3.) Purchased 3,800 shares of common stock for the treasury at $20 per share.
(4.) Sold 2,500 shares of treasury stock purchased in transaction #3 for $22 per share.
(5.) Declared a cash dividend of $2.80 per share on the common stock outstanding, to be paid early next year.
(6.) Declared and issued a 5% stock dividend on the common stock when the market price per share of common stock was $26. $$\begin{array} { | l | l | l | l | l | l | l | l | } \hline & \text { Cash } & \begin{array} { c } \text { Other } \\\text { Assets }\end{array} & \text { Liabilities } & \begin{array} { c } \text { Paid-in } \\\text { Capital }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} & \begin{array} { c } \text { Treasury } \\\text { Stock }\end{array} & \begin{array} { c } \text { Net } \\\text { Income }\end{array} \\\hline \text { 1. } & & & & & & & \\\hline \text { 2. } & & & & & & & \\\hline \text { 3. } & & & & & & & \\\hline \text { 4. } & & & & & & & \\\hline 5 . & & & & & & & \\\hline 6 . & & & & & & & \\\hline\end{array}$$

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Definitions:

Brain Imaging

Techniques that are used to capture images of the structure and function of the brain, aiding in diagnosis and research on neurological conditions.

fMRI

Functional Magnetic Resonance Imaging, a brain imaging technique that measures brain activity by detecting changes associated with blood flow.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood.

PET

Positron Emission Tomography, a scanning method that uses radioactive substances to visualize and measure changes in metabolic processes and in other physiological activities in the body.