Date Transaction Debit Credit Remark

1 Jan 20X0 A&CL $ 300.000

Able, Capital $ 100.000
Baker, Capital $ 100.000
Cabot, Capital $ 100.000

1 April 20X0 A&CL $ 100.000

Long Term Debt $ 100.000

3 April 20X0 Able, Capital $ 18.000

Baker, Capital $ 18.000
Cabot, Capital $ 18.000
A&CL $ 54.000

Date Transaction Debit Credit Remark

4 April 20X1 No impact on investment, capital because the loan is a current liability
5 Oct 20X1 Change ownership among owner's does not give effect to entity
Confirm or restate owner's equity into two capital account (2 Owners)

6 Oct 20X1 A&CL $ 12.000 ShareHolder's Equity (Year 20x1):

Able, Capital $ 6.000 Long Term Debt $ 100.000
Cabot, Capital $ 6.000 Able, Capital $ 129.000
Cabot, Capital $ 129.000
Total Invested Capital $ 358.000
Date Transaction Debit Credit Remark
1 Jan 20X2 Able, Capital $ 129.000
Cabot, Capital $ 129.000
Common Stock ($100 par) $ 10.000
Add Paid in Capital $ 248.000

Mar 20X2 A&CL $ 50.000

Long Term Debt $ 50.000

31 Dec 20X2 A&CL $ 26.000

Retained Earnings $ 26.000

Date Transaction Debit Credit Remark

31 Dec 20X3 A&CL $ 43.000
Retained Earnings $ 43.000

Able and Cabot each own 50000 per shares after stock split
The earnings per share is $0,43 ($43,000 divided by 100,000 shares).
Par value $0,10 after split

Date Transaction Debit Credit Remark ShareHolder's Equity (Year 20x4):

Jan 20X4 A&CL $ 720.000 Net Proceeds is $7.20/share Long Term Debt $ 150.000
Common Stock ($0,10 par) $ 10.000 Common Stock (par @ $ 0.1) $ 20.000
Add Paid in Capital $ 710.000 Add. Paid in Capital $ 958.000
Retained Earning: $ 137.000
31 Dec 20X4 A&CL $ 68.000 Total Invested Capital $ 1.265.000
Retained Earnings $ 68.000

Date Transaction Debit Credit Remark

Jan 20X5 A&CL $ 500.000 $475.000 asset debit, $75.000 insurence cost
Bonds Payable $ 500.000

Jan 20X5 Long Term Debt $ 150.000

A&CL $ 150.000

31 Dec 20X5 A&CL $ 85.000

Retained Earnings $ 85.000

Date Transaction Debit Credit Remark ShareHolder's Equity (Year 20x6):

April 20X6 No Impact on the Company's Financial Statement Bond $ 500.000
Common Stock (par @ $ 0.1) $ 20.000
31 Dec 20X6 A&CL $ 111.000 Add. Paid in Capital $ 958.000
Retained Earnings $ 111.000 Retained Earning: $ 303.000
Total Invested Capital $ 1.781.000
31 Dec 20X6 Retained Earnings $ 30.000 $0.15 per share dividend on the
A&CL $ 30.000 200.000 outstanding share

Date Transaction Debit Credit Remark

June 20X7 Treasury Stock $ 200.000
A&CL $ 200.000

31 Dec 20X7 A&CL $ 152.000

Retained Earnings $ 152.000

31 Dec 20X7 Retained Earnings $ 36.000 $0,2 per share

A&CL $ 36.000

Date Transaction Debit Credit Remark

Jan 20X8 A&CL $ 200.000
Preferred Stock $ 200.000

31 Dec 20X8 A&CL $ 186.000

Retained Earnings $ 186.000

31 Dec 20X8 Retained Earnings $ 65.000

A&CL $ 65.000

Date Transaction Debit Credit Remark ShareHolder's Equity (Year 20x9):

31 Dec 20X9 A&CL $ 252.000 Bond $ 500.000
Retained Earnings $ 252.000 Preferred Stock $ 200.000
Common Stock (par @ $ 0.1) $ 20.000
Jan 20X9 Retained Earnings $ 20.000 Add. Paid in Capital $ 958.000
A&CL $ 20.000 Treasury Stock -$ 47.000
Retained Earning: $ 619.000
31 Dec 20X9 Retained Earnings $ 153.000 Total Invested Capital $ 2.250.000
Common Stock $ 153.000