LO 10 Problem 7-30Multistep income statement and classified
balance sheet (Edmonds. Survey of
Accounting. 2012)
Required
Use the following information to prepare a multistep income
statement and a classified balance sheet
for Douglas Company for 2012.Hint: Some of the items willnot appear on either statement, and
ending retained earnings must be
calculated.) (Edmonds. Survey of
Accounting. 2012)
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Problem
8-24
LO 4-8
Problem 8-24Effects of equity transactions on financial statements
The
following events were experienced by Abbot Inc.:
1. Issued
cumulative preferred stock for cash.
2. Issued
common stock for cash.
3. Distributed
a 2-for-1 stock split on the common stock.
4. Issued
noncumulative preferred stock for cash.
5.
Appropriated retained earnings.
6. Sold
treasury stock for an amount of cash that was more than the cost
of the treasury stock.
7.
Distributed a stock dividend.
8. Paid cash
to purchase treasury stock. (Edmonds.
Survey of Accounting. 2012)
9. Declared a cash dividend.
10. Paid the cash dividend declared in Event 9.
Required
Show the effect of each event on the elements of the
financial statements using a horizontal
statements model like the following one. Use + for increase, ? for decrease, and NA for not affected. In the
Cash Flow column, indicate whether the
item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction
is entered as an example. (Edmonds.
Survey of Accounting. 2012
