Assume Frozen Foods of Maine, Inc., completed the following transactions during 2012, the company€™s 10th year of operations:

Requirement
1. Analyze each transaction in terms of its effect on the accounting equation of Frozen Foods of Maine,Inc.

Transcribed Image Text:

Feb 3 Mar 19 Apr 24 Issued 11,000 shares of common stock ($3.00 par) for cash of $275,000. Purchased 2,400 shares of the company's own common stock at S20 per share. Sold 1,100 shares of treasury common stock for S34 per share. Declared a cash dividend on the 12,000 shares of $0.90 no-par Aug 15 preferred stock. Paid the cash dividends. Distributed a 10% stock dividend on the 98,000 shares of $3.00 Sep 1 Nov 22 par common stock outstanding. The market value of the common stock was $22 per share.