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
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
248,000
Notes Payable
Db
A&CL
Db
Cr
434,000
43,000
477,000
Common Stock
Db
Cr
10,000
10,000
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
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
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
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
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