Milo Corporation completed the following selected transactions during the curren

Question

Milo Corporation completed the following selected transactions during the current year (Click the icon to view the transactions.) Requirement Analyze each transaction in terms of its effect (in dollars) on the accounting equation of Milo Corporation. Analyze each transaction in terms of its effect on the accounting equation of Milo Corporation. (Use parentheses or a minus sign when subtracting numbers or when entering negative amounts. Enter an amount in each input cell using a zero for the portion of the accounting equation not affected by the transaction.) Assets = Liabilities + Equity Mar 3 May 16 May 30 Dec 8 Dec 19 Mar May Dec 3 Distributed a 13% stock dividend on the 90,000 common shares outstanding. The market price of the common shares was $27 per share. 16 Declared a cash dividend on the $6 preferred shares (1,700 shares outstanding) 30 Paid the cash dividends. 8 Issued 2,600 common shares for $32 per share. 19 Issued 19,000 common shares for $30 per share

Explanation / Answer

Assets = Liabilities + Shareholders Equity Mar 3 0 = 0 +          (315,900)            315,900 May 16 0 =       10,200 +            (10,200) May 30      10,200 =     (10,200) + 0 Dec 8      83,200 = 0 +               83,200 Dec 19    570,000 = 0 +            570,000 Common share outstanding                90,000 Market price                        27 Outstanding value          2,430,000 Stock dividend % 13% Stock dividend              315,900 Preferred share outstanding         1,700 Cash dividend per share                 6 Cash dividend      10,200 Issued common share         2,600 Issue price per share               32 Issue price      83,200 Issued common share      19,000 Issue price per share               30 Issue price    570,000

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