Question

Consider each of the following transactions separately from every other transaction:
a. Issuance of 50,000 common shares at $15.
b. Purchase of 1,000 treasury shares (average price is $0.50) at $5 per share.
c. Issuance of a 10% stock dividend. Before the dividend, 500,000 common shares were outstanding; market value was $7 at the time of the dividend.
d. Split shares 3-for-1. Prior to the split, 60,000 common shares were outstanding.
Requirement
Identify whether each transaction increased, decreased, or did not change total shareholders’ equity.


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  • CreatedJuly 08, 2015
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