题目内容
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【单选题】Davidson Corporation had the following transactions: （1) Issued five million share
【单选题】Davidson Corporation had the following transactions: (1) Issued five million shares of $2 par value preferred stock at a price of $10. (2) Purchased 100000 shares of its own common stock as treasury stock at a market parice of $35 Use the balance sheet equation to analyze the financial statement effects of these transactions and set up the following columns; cash, preferred stock, additional paid-in capital, common stock, and treasury stock.
A、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 50,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
B、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 40,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
C、Assets = Liabilities + Owner’s equity (1) Cash Preferred Stock Additional paid-in Capital 10,000,000 10,000,000 40,000,000 (2) Cash Treasury stock -3,500,000 -3,500,000
D、None of the above.
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