Question

American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.

AMERICAN LASER, INC
Balance Sheet (partial)
At December 31
Current Assets
	0
	0
	0
Total Assets	0
Contributed Capital
Total Contributed Capital	0
Total	0
Total Liabilities and Stockholders' Equity	$0

No	Date	General Journal	Debit	Credit
1	Jan 15	Cash	50,000
		Common Stock		5,000
		Additional Paid-In Capital—Common Stock		45,000
2	Feb 15	Treasury Stock	33,000
		Cash		33,000
3	Mar 15	Cash	24,000
		Treasury Stock		22,000
		Additional Paid-In Capital, Treasury Stock		2,000
4	Aug 15	Cash	4,600
		Additional Paid-In Capital, Treasury Stock	2,000
		Treasury Stock		6,600
5	Sep 15	Dividends	14,600
		Dividends Payable		14,600
6	Oct 01	Cash	101,000
		Premium on Bonds Payable		1,000
		Bonds Payable		100,000
7	Oct 03	Allowance for Doubtful Accounts	500
		Accounts Receivable		500
8	Dec 31	Retained Earnings	14,600
		Dividends		14,600

Answer 1