Question

Many types of transactions may affect stockholders’ equity. Identify the effects of the following transactions on total stockholders’ equity. Each transaction is independent.
a. A 10% stock dividend. Before the dividend, 520,000 shares of $ 1 par value common stock were outstanding; market value was $ 3 at the time of the dividend.
b. A 2-for-1 stock split. Prior to the split, 65,000 shares of $ 4 par value common stock were outstanding.
c. Purchase of 1,000 shares of $ 0.50 par treasury stock at $ 3 per share.
d. Sale of 900 shares of $ 0.50 par treasury stock for $ 5 per share. Cost of the treasury stock was $ 3 per share.



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  • CreatedJanuary 16, 2015
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