[The following information applies to the questions displayed below. Global Mari

Question

[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 $340,000 of net income and the following selected transactions occurred in the order given: a Issued 110,000 shares of the common stock at $49 cash per share. b Reacquired 19,000 shares at $44 cash per share. Reissued 7,000 shares from treasury for $45 per share. d Reissued 7,000 shares from treasury for $43 per share. Required information 0.50 points Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.) e.

Explanation / Answer

Assets Liabilities Stockholder Equity a cash 5,390,000.00 Common Stock 550000 Additional paid in capital 4840000 b cash -836000 Treasury stock 836000 c Treasury stock -308000 Additional paid in capital 7000 Cash 315000 d Treasury stock -308000 Additional paid in capital -7000 cash 301000 Cash 5,390,000.00 Common Stock 550000 Additional paid in capital 4840000 Treasury Stock 836000 Cash 836000 Cash 315000 Treasury stock 308000 Additional paid in capital 7000 Cash 301000 Additional paid in capital 7000 Treasury stock 308000 Global Marine Balance Sheet At december 31 shareholders Equity Contributed capital Common Stock Issued and paidup par@ 5 550000 of 110000 Total contributedCapital 550000 Additional paid in capital 4840000 total 5390000 Total Shareholder equity 5390000

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