Financial Accounting, Assignment Ch2, Problem 2-3
Autor: Mohammed Aljaradi • April 17, 2019 • Coursework • 325 Words (2 Pages) • 738 Views
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Financial Accounting, Assignment CH2, Problem 2-3
No. | Description | Debit ($) | Credit ($) |
1. | Cash | 100,000 | |
Capital stock | 100,000 | ||
2. | Bonds payable | 25,000 | |
Capital stock | 25,000 | ||
3. | Retained earning | 8,500 | |
Accumulated depreciation | 8,500 | ||
4. | Inventory | 15,900 | |
Cash | 15,900 | ||
5. | Inventory | 9,400 | |
Accounts payable | 9,400 | ||
6. | Accounts receivable | 7,200 | |
Inventory | 4,500 | ||
Retained earnings | 2,700 | ||
7. | Cash | 3,500 | |
Accounts receivable | 3,500 | ||
8. | Retained Earnings | 3,000 | |
Dividends payable | 3,000 | ||
9. | Dividends payable | 3,000 | |
Cash | 3,000 | ||
10 | There is no effect in the company capitalization, because After replacing each outstanding share with two new shares, the value of each share reduced by half. |
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