Effects Stk. Eq. Transactions No.2 Solution

Effects Stk. Eq. Transactions No.2 Solution - Effects of...

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Effects of Stockholders’ Equity Transactions No. 2 Solution At 1/1/07 ABC Company had total current assets of $1,000,000 total assets of $4,500,000, total current liabilities of $800,000, total liabilities of $2,500,000 and Stockholders’ Equity of $2,000,000 including 100,000 shares of $6 par common stock which originally sold for $14 per share, paid in capital from treasury stock transactions $1,500, and retained earnings of $598,500. Assume the transactions below are cumulative. 1 2 3 4 5 6 7 8 Current Assets -50,000 -50,000 +6,000 Total Assets -50,000 -50,000 +6,000 Current Liabilities +50,000 -50,000 Total Liabilities +50,000 -50,000 Common Stock +30,000 +185,400 PIC in xs Par +25,000 PIC fm T/S Trans -1,500 C/S Div. Distr. +30,000 -30,000 +185,400 -185,400 Retained Earnings -50,000 -55,000 -2,500 -185,400 Treas. Stock (+50,000) (-10,000) Total Stk. Eq. -50,000 -50,000 +6,000 Current Ratio 1.25 1.18 1.19 no chg no chg 1.125 1.13 no chg no chg D/TA Ratio .56 .57 .56 no chg no chg .57 .57 no chg
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Effects Stk. Eq. Transactions No.2 Solution - Effects of...

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