Required information [The following information applies to the questions displayed below.] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $470,000 of net income and declared no dividends; the following selected transactions occurred in the order given: a. Issued 110,000 shares of the common stock at $62 cash per share. b. Reacquired 32,000 shares at $57 cash per share. c. Reissued 13,500 shares from treasury for $58 per share. d. Reissued 13,500 shares from treasury for $56 per share. Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) a. Cash a. b. Cash C. Cash C. d. Cash d. Assets 6,820,000 = (1,824,000) 783,000 = 756,000 Liabilities Stockholders' Equity +Common Stock 550,000 +Additional Paid-In Capital, Common Stock 6,270,000 + Treasury Stock (1,824,000) + Treasury Stock 783,000 +Additional Paid-In Capital, Treasury Stock + Treasury Stock +Additional Paid-In Capital, Treasury Stock 783,000
Required information [The following information applies to the questions displayed below.] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $470,000 of net income and declared no dividends; the following selected transactions occurred in the order given: a. Issued 110,000 shares of the common stock at $62 cash per share. b. Reacquired 32,000 shares at $57 cash per share. c. Reissued 13,500 shares from treasury for $58 per share. d. Reissued 13,500 shares from treasury for $56 per share. Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) a. Cash a. b. Cash C. Cash C. d. Cash d. Assets 6,820,000 = (1,824,000) 783,000 = 756,000 Liabilities Stockholders' Equity +Common Stock 550,000 +Additional Paid-In Capital, Common Stock 6,270,000 + Treasury Stock (1,824,000) + Treasury Stock 783,000 +Additional Paid-In Capital, Treasury Stock + Treasury Stock +Additional Paid-In Capital, Treasury Stock 783,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par
value. During the first year, the company earned $470,000 of net income and declared no dividends; the following
selected transactions occurred in the order given:
a. Issued 110,000 shares of the common stock at $62 cash per share.
b. Reacquired 32,000 shares at $57 cash per share.
c. Reissued 13,500 shares from treasury for $58 per share.
d. Reissued 13,500 shares from treasury for $56 per share.
Required:
1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and
Stockholders' Equity with a minus sign.)
a. Cash
a.
b. Cash
C. Cash
C.
d. Cash
d.
Assets
6,820,000 =
(1,824,000)
783,000 =
756,000
Liabilities
Stockholders' Equity
+Common Stock
550,000
+Additional Paid-In Capital, Common Stock
6,270,000
+ Treasury Stock
(1,824,000)
+ Treasury Stock
783,000
+Additional Paid-In Capital, Treasury Stock
+ Treasury Stock
+Additional Paid-In Capital, Treasury Stock
783,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e27f75a-3de3-4f2f-9f86-79a72ca7b35e%2F124d2be5-1e7a-4547-b5d8-043703cdccfa%2Fze9jjjf_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par
value. During the first year, the company earned $470,000 of net income and declared no dividends; the following
selected transactions occurred in the order given:
a. Issued 110,000 shares of the common stock at $62 cash per share.
b. Reacquired 32,000 shares at $57 cash per share.
c. Reissued 13,500 shares from treasury for $58 per share.
d. Reissued 13,500 shares from treasury for $56 per share.
Required:
1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and
Stockholders' Equity with a minus sign.)
a. Cash
a.
b. Cash
C. Cash
C.
d. Cash
d.
Assets
6,820,000 =
(1,824,000)
783,000 =
756,000
Liabilities
Stockholders' Equity
+Common Stock
550,000
+Additional Paid-In Capital, Common Stock
6,270,000
+ Treasury Stock
(1,824,000)
+ Treasury Stock
783,000
+Additional Paid-In Capital, Treasury Stock
+ Treasury Stock
+Additional Paid-In Capital, Treasury Stock
783,000
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