Lindsay Co. was organized to operate as an olive business. The charter authorized the following capital stock: common stock, par value $2 per share. During the first year of operations, the following transactions were completed.
Jan. 5 Sold and issued 100,000 shares of common stock for $20 per share.
Feb 16 Exchanged 1,000 shares of common stock for a truck. The value of the stock on Feb 16 was $25 per share according to the Wall Street Journal. A search of inventories at car lots in the area revealed that the average list price of similar trucks was $27,000.
June. 17 Purchased 5,000 shares treasury stock at $22 per share.
Aug. 1 Sold 1,000 shares treasury stock at $25 per share.
Aug. 30 Sold 2,500 shares treasury stock at $20 per share.
Oct. 1 Declared cash dividends of $1.00 per share.
Oct.15 Paid cash dividends.
Use horizontal analysis to record the above transactions.
|Event||Date||Cash +||Non cash assets =||Liabilities+||Common||Additional||Treasury||Retained earnings||Cashflows|
|Stock capital+||paid in cap -||Stock +|
|Sale of stock||5-Jan||2,000,000||2000000||FA $ 2000,000|
|Exchange for truck||16-Feb||Truck $ 27000||2000||25000||NA|
|Treasury stock||17-Jun||-110000||110000||FA ($ 110000)|
|Sales of treasury stock||1-Aug||25000||3000||-22000||FA $ 25000|
|Sales f Treasury stock||30-Aug||50000||-3000||-55000||-2000||FA $ 50000|
|Dividend paid||15-Oct||-99500||-99500||FA ($ 99500)|
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