Assessing Financial Statement Effects of Marketable Equity Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased 28,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 28,000 common shares of Heller for $441,840 cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction (a) (b) (c) (d) Cash Asset ♦ ♦ + + Noncash Assets + + → + Balance Sheet Liabilities + + + + Contrib. Capital + + + + Earned Capital + + ♦ Revenues + + + + Income Statement Expenses ♦ ♦ ◆ + Net Income

Assessing Financial Statement Effects of Marketable Equity Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased 28,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 28,000 common shares of Heller for $441,840 cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction (a) (b) (c) (d) Cash Asset ♦ ♦ + + Noncash Assets + + → + Balance Sheet Liabilities + + + + Contrib. Capital + + + + Earned Capital + + ♦ Revenues + + + + Income Statement Expenses ♦ ♦ ◆ + Net Income

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.3DC

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