On the first day of the fiscal year, Music Productions Corporation had 210,000 shares of $2 par

Question:

On the first day of the fiscal year, Music Productions Corporation had 210,000 shares of $2 par common stock issued (at par) and outstanding, and the retained earnings balance was $900,000. Show how each of the following transactions would affect the accounting equation:

1. Issued 5,000 additional shares of common stock for $10 per share

2. Declared and distributed a 5% stock dividend when the market price was $10 per share

3. Issued 15,000 additional shares of common stock for $12 per share

4. Declared a cash dividend on outstanding shares of $1.30 per share

5. Paid the dividend declared in item (4)

6. Purchased 5,000 shares of treasury stock for $14 per share

7. Sold 2,000 shares of treasury stock for $16 per share

8. Sold 2,500 shares of treasury stock for $15 per share

9. Declared 2-for-1 stock split

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...