Question

Consider each of the following transactions separately from every other transaction:
a. Issuance of 50,000 shares of $7 par common at $19.
b. Purchase of 1,900 shares of treasury stock (par value $0.50) at $1 per share.
c. Issuance of a 10% stock dividend. Before the dividend, 200,000 shares of $1 par common stock were outstanding; market value was $5 at the time of the dividend.
d. Sale of 300 shares of $1 par treasury stock for $10 per share. Cost of the treasury stock was $2 per share.
e. Split stock 4-for-1. Prior to the split, 60,000 shares of $3 par common 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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