a connect COMPREHENSIVE PROBLEM 3 103C111 Financial Reportin

a connect COMPREHENSIVE PROBLEM -3, 10-3C11-1 Financial Reporting of Write-off, Bond Issuance 1-2, 11-3 and Common Stock Issuance, Purchase, Reissuance and Cash Dividends (Chapters 8, 10 and 11) American Laser, Inc., reported the following account balances on January 1. S 5,000 30,000 90,000 2,000 Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock 247,000 10,000 10,000 10,000 120,000 0 The company entered into the following transactions during the year. Jan. 15 Feb. 15 Mar. 15 Aug. 15 Sept. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Reacquired 3,000 shares of $1 par common stock into t Reissued 2,000 shares of treasury stock for $24.000 cash. Reissued 600 shares of treasury stock for $4,600 cash. reasury for $33,000 cash. Declared (but did not yet pay) a S1 cash dividend on each outstanding share of Oct. 1 Oct. 3 common stock. Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Wrote off a $500 balance due from a customer who went bankrupt. Required: I. Analyze the effects of each transaction on total assets, liabilities, and stockholder\' equiy. 2. Prepare journal entries to record each transaction.

Solution

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Date	Assets	=	Liabilities	+	Stockholders\' Equity
Jan. 15	50000	=	NE	+	50000
Feb. 15	-33000	=	NE	+	-33000
Mar. 15	24000	=	NE	+	24000
Aug. 15	4600	=	NE	+	4600
Sept. 15	NE	=	14600	+	-14600
Oct. 1	101000	=	101000	+	NE
Oct. 3	0	=	NE	+	NE