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Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1.   Purchased 5,000 treasury shares at $45 per share. 2.   Resold 2,000 of the treasury shares at $49 per share. 3.   Resold 500 of the treasury shares at $40 per share. Instructions Use the following code to indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method (I = Increase; D = Decrease; NE = No effect). # Assets Liabilities Stockholders’ Equity Paid-in Capital Retained Earnings Net Income 1 00 00 00 00 00 00 2 00 00 00 00 00 00 3 00 00 00 00

Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1.   Purchased 5,000 treasury shares at $45 per share. 2.   Resold 2,000 of the treasury shares at $49 per share. 3.   Resold 500 of the treasury shares at $40 per share. Instructions Use the following code to indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method (I = Increase; D = Decrease; NE = No effect). # Assets Liabilities Stockholders’ Equity Paid-in Capital Retained Earnings Net Income 1 00 00 00 00 00 00 2 00 00 00 00 00 00 3 00 00 00 00

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...
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Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions.

1.   Purchased 5,000 treasury shares at $45 per share.

2.   Resold 2,000 of the treasury shares at $49 per share.

3.   Resold 500 of the treasury shares at $40 per share.

Instructions

Use the following code to indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method (I = Increase; D = Decrease; NE = No effect).

# Assets Liabilities Stockholders’ Equity Paid-in Capital Retained Earnings Net Income
1 00 00 00 00 00 00
2 00 00 00 00 00 00
3 00 00 00 00  
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