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Transaction analysis-various accounts: enter the following column headings across the top of a sheet of paper.Transaction, Cash, Other Assets, Liabilities, Paid-in Capital, Retained Earnings, Treasury Stock, Net Income
Enter the transaction letter in the first column and show the effect (if any) of each of the following statement category by entering a plus (+) or minus (-) sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the same chronological sequence as listed here:
a. sold 5200 shares of $10 par value preferred stock at $12.50 per share.b. Declared the annual cash dividend of $3.20 per share on common stock. There were 18,400 shares of common stock issued and outstanding throughout the year.c. Issued 6,400 shares of $10 par value preferred stock in exchange for building when the Market price of preferred stock was $13 per share.d. Purchased 300 shares of preferred stock for the treasury at a price of $16 per share.e. Sold 140 shares of the preferred stock held in treasury (see D) for $17 per share.f. Declared and issued a 15% stock dividend on the $1 par value common stock when the market price per share was $45.
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What would the effect have been on the audit procedures and sample sizes for requirement b?
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