Tower Company Reported the Following Amounts of Contributed Capital in the Shareholders

question 58

Essay

Tower Company reported the following amounts of contributed capital in the shareholders' equity accounts as of January 1, 20X5: $$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Contributed Capital: } & \\\hline \text { Common shares, authorized } 50,000 \text { shares; } & \\\hline \text { Issued outstanding } 30,000 \text { shares } & \$ 250,000 \\\hline\end{array}\\\\\begin{array} { | l | l | l | l | } \hline \text { A } & \text { Cash } & \text { F } & \text { Treasury shares } \\\hline \text { B } & \text { Dividends payable } & \text { G } & \text { Contributed capital-treasury share transactions } \\\hline \text { C } & \text { Common shares } & \text { H } & \text { Dividends declared } \\\hline \text { D } & \text { Preferred shares } &\text { I} & \text { None of the above accounts (specify) } \\\hline \text { E } & \text { Retained earnings } & & \\\hline\end{array}\end{array}$$ Indicate the journal entry required to record each of the following transactions by entering the letter code corresponding to each account to be debited and credited and the amount of each debit and credit. The transactions are independent unless otherwise stated.

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Definitions:

National Banks

Financial institutions chartered by the federal government, subject to national banking laws and regulations.

State Banks

Financial institutions that are chartered by a state to provide banking services, distinct from those chartered by the federal government.

NOW Accounts

Negotiable Order of Withdrawal accounts; interest-earning deposit accounts from which holders can write checks.

Money Supply

The inclusive amount of economic monetary assets present at a particular instance in an economy.