Question

Consider each of the following transactions separately from every other transaction:
a. Issuance of 58,000 shares of $14 par common at $22.
b. Purchase of 1,100 shares of treasury stock (par value at $0.50) at $6 per share.
c. Issuance of a 10% stock dividend. Before the dividend, 550,000 shares of $1 par common stock were outstanding; market value was $3 at the time of the  dividend.
d. Sale of 300 shares of $1 par treasury stock for $7 per share. Cost of the treasury stock was $4 per share.
e. Split stocks 4-for-1. Prior to the split, 90,000 shares of $3 par common stock were outstanding.

Requirement
1. Identify whether each transaction increased, decreased, or did not change total stockholders’ equity.



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  • CreatedApril 29, 2014
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