ed 16,000 common shares of Heller Co. at $16 cash per share. a cash dividend of $1.25 per common share from Heller. market price of Heller common stock is $17.50 per share. 16.000 common shares of Heller for $252,480 cash.
ed 16,000 common shares of Heller Co. at $16 cash per share. a cash dividend of $1.25 per common share from Heller. market price of Heller common stock is $17.50 per share. 16.000 common shares of Heller for $252,480 cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![a. Purchased 16,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 16,000 common shares of Heller for $252,480 cash.
Note: For each account catégory, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Balance Sheet
Transaction
Cash
Asset
Noncash Assets
Liabilities
Contrib.
Capital
Earned
Capital
Income Statement
Revenues
Expenses
Net
Income
(256,000)✔
256,000
0 ✓
Cash
=
Investment
= ✓ N/A
✔ N/A
=
N/A
M/A
N/A
(b)
20,000 ▼
20,000✓
20,000 ✔
0✓ =
20,000 ✓
Cash
✓ N/A
÷ N/A
÷
✓ N/A
=
Retained earnings
Dividend income
=
✓ N/A
=
(c)
0✓
24,000 ✔
0✓
0✓
24,000 ▼
24,000
く
24,000
Cash
= Investment
✓ N/A
=
N/A
Retained earnings
nrealized gain
÷
(d)
252,480✔
(2.240,000) x-
28,480 x
Cash
÷
✓ Investment
N/A
N/A
Retained earnings
M/A
0~
✓ N/A
Unrealized loss
÷
0x -
28.480 x
Check](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe63b0bb-5c5e-4189-a0f7-7d350cbd0c9a%2F4ba23803-9a29-498e-ae69-88241eb3331d%2Ftltify8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. Purchased 16,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 16,000 common shares of Heller for $252,480 cash.
Note: For each account catégory, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Balance Sheet
Transaction
Cash
Asset
Noncash Assets
Liabilities
Contrib.
Capital
Earned
Capital
Income Statement
Revenues
Expenses
Net
Income
(256,000)✔
256,000
0 ✓
Cash
=
Investment
= ✓ N/A
✔ N/A
=
N/A
M/A
N/A
(b)
20,000 ▼
20,000✓
20,000 ✔
0✓ =
20,000 ✓
Cash
✓ N/A
÷ N/A
÷
✓ N/A
=
Retained earnings
Dividend income
=
✓ N/A
=
(c)
0✓
24,000 ✔
0✓
0✓
24,000 ▼
24,000
く
24,000
Cash
= Investment
✓ N/A
=
N/A
Retained earnings
nrealized gain
÷
(d)
252,480✔
(2.240,000) x-
28,480 x
Cash
÷
✓ Investment
N/A
N/A
Retained earnings
M/A
0~
✓ N/A
Unrealized loss
÷
0x -
28.480 x
Check
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