Consider each of the following transactions separately from every other transact

Question

Consider each of the following transactions separately from every other transaction: 1 (Click the icon to view the transactions.) Requirement 1. Identify whether each transaction increased, decreased, or did not change total stockholders' equity. (If there is no effect, enter a zero.) Effect on total More Info Stockholders' equity Amount a. a. Issuance of 50,000 shares of S7 par common at $16 b. Purchase of 1,900 shares of treasury stock (par value S0.75) at $5 per share c. Issuance of a 15 percent stock dividend; before the dividend, 100,000 shares of $5 par common stock were C. outstanding and market value was $7 at the time of the dividend Sale of 400 shares of $1 par treasury stock for $8 per share; cost of the treasury stock was $7 per share Split stock 2-for-1. Prior to the split, 40,000 shares of $6 par common were outstanding d. d. e. e. Print Done

Explanation / Answer

Effect on shareholders Equity Amount

1 Issuance of 50000 Shares 800000 increase

2 Purchase of 1900 shares of

treasury stock 1900*5 9500 derease

3 issuance of a 15% stock div

15000*5 75000 increase

4. sale of 400 sharesof 1 par

treasury stock 7*400 2800 increase

5. split stock 0.00 no effect

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.