`

Db
Cr
300,000

a) A&CL
Able, Capital
Baker, Capital
Cabot, Capital
b) A&CL

100,000
100,000
100,000
100,000

Notes Payable
c) Able, Capital
Baker, Capital
Cabot, Capital

100,000
18,000
18,000
18,000

A&CL

20X1
a) A&CL

54,000

50,000
Loans Payable

b) Baker, Capital

50,000
82,000

Able, Capital
Cabot, Capital
c) A&CL

41,000
41,000
12,000

Able, Capital
Cabot, Capital

20X2
a) Able, Capital
Cabot, Capital
Common Stock
Additional Paid-in-Capital
b) Loans Payable

6,000
6,000

129,000
129,000
10,000
248,000
50,000

Notes Payable
c) A&CL

50,000
26,000

Retained Earnings

26,000

20X3
a) A&CL

43,000
Retained Earnings

43,000

Since the total number of stocks are 100,000, the earnings per share
become 43,000/100,000 = $0.43

20X4
a) A&CL

775,000
Common Stock at par value, $0.10
Additional Paid-in-Capital

Additional Paid-in-Capital

10,000
765,000
55,000

A&CL

b) A&CL

55,000

68,000
Retained Earnings

20X5
a) A&CL

68,000

500,000
Bonds Payable

Retained Earnings

500,000
25,000

A&CL

b) Notes Payable

25,000

150,000
A&CL

c) A&CL

150,000
85,000

Retained Earnings

85,000

20X6
a) No Effect since personal transaction
b) A&CL

111,000
Retained Earnings

c) Retained Earnings

111,000
30,000

A&CL

20X7
a) Treasury Stock

30,000

200,000
A&CL

b) A&CL

200,000
152,000

Retained Earnings
c) Retained Earnings

152,000
36000

A&CL

36000

Since the total number of stocks are 100,000, the earnings per share
become 43,000/100,000 = $0.43

20X8
a) A&CL

200,000
Preferred Stock

b) A%CL

200,000
186,000

Retained Earnings
c) Retained Earnings

186,000
45000

A&CL
Retained Earnings

45000
20000

A&CL

20X9
a) A&CL

20000

252,000
Retained Earnings

Retained Earnings

20,000
A&CL

*Preferred stock ($5 dividend)

252,000

20,000

A&CL
Db
300,000
100,000

Cr
54,000

346,000
Able, Capital
Db
Cr
18,000 100,000

Baker, Capital
Db
Cr
18,000 100,000

82,000

82,000

Cabot, Capital
Db
18,000

A&CL
Db
Cr
346,000
50,000
12,000
408,000
Able, Capital
Db
Cr
82,000
41,000
6,000
129,000

Cabot, Capital
Db
Cr
82,000
41,000
6,000
129,000

Notes Payable
Db

A&CL
Db
Cr
408,000
26,000
434,000
Common Stock
Db
Cr
10,000

10,000

Additional Paid-In Capitla

Db
Cr
248,000

248,000

Notes Payable
Db

A&CL
Db
Cr
434,000
43,000
477,000
Common Stock
Db
Cr
10,000

10,000

Additional Paid-In Capitla

Db
Cr
248,000

Notes Payable
Db

248,000

A&CL
Db
Cr
477,000
55,000
775,000
68,000
1,265,000
Common Stock
Db
Cr
10,000
10,000
20,000

Additional Paid-In Capitla

Db
Cr
55,000 248,000
765,000

Notes Payable
Db

958,000

A&CL
Db
1,265,000
500,000
85,000
1,675,000

Cr
25,000
150,000

Common Stock
Db
Cr
20,000

Additional Paid-In Capitla

Db
Cr
958,000

Bonds Payable
Db

20,000

958,000

A&CL
Db
1,675,000
111,000

Cr
30,000

1,756,000
Common Stock
Db
Cr
20,000

Additional Paid-In Capitla

Db
Cr
958,000

20,000

958,000

A&CL
Db
Cr
1,756,000 200,000
152,000
36,000

Treasury Stock
Db
Cr
200,000

1,672,000

200,000

Common Stock
Db
Cr
20,000

Additional Paid-In Capitla

Db
Cr
958,000

20,000

A&CL
Db
1,672,000
200,000
186,000
1,993,000

Cr
45,000
20,000

Common Stock

Bonds Payable
Db

Bonds Payable
Db

958,000

Treasury Stock
Db
Cr
200,000

200,000
Additional Paid-In Capitla

Bonds Payable

Db

Cr
20,000

20,000

Db

Cr
958,000

958,000

Db

Cabot, Capital
Cr
100,000

Notes Payable
Db
Cr
100,000

82,000

100,000

Notes Payable
Cr
100,000

Loans Payable
Db
Cr
50,000

100,000

50,000

Notes Payable
Cr
150,000

Retained Earnings
Db
Cr
26,000

150,000

26,000

Notes Payable
Cr
150,000

Retained Earnings
Db
Cr
26,000
43,000

150,000

69,000

Notes Payable
Cr
150,000

Retained Earnings
Db
Cr
69,000
68,000

150,000

137,000

Bonds Payable
Cr
500,000

Retained Earnings
Db
Cr
25,000 137,000
85,000

500,000

197,000

Bonds Payable
Cr
500,000

Retained Earnings
Db
Cr
30,000 197,000
111,000

500,000

278,000

Bonds Payable
Cr
500,000

Retained Earnings
Db
Cr
36,000 278,000
152,000

500,000

394,000

Bonds Payable

Retained Earnings

Preferred Stock

Cr
500,000

500,000

Db
45,000
20,000

Cr
394,000
186,000
515,000

Db

Cr
200,000

200,000