At December 31, 2021, Creator Corporation reported the stockholders’ equity accounts shown here (with dollar amounts in millions, except per-share amounts).

Creator’s 2022 transactions included

a. Net income, $451 million.

b. Issuance of 22 million shares of common stock for $14.50 per share.

c. Purchase of 10 million shares of treasury stock for $130 million.

d. Sold 3 million of the treasury shares purchased in part c for $45 million.

e. Declaration and payment of cash dividends of $28 million.

Requirements

1. Journalize Creator’s transactions in parts b, c, d, and e. Explanations are not required.

2. What was the overall effect of these transactions (parts a through e) on Creator’s stockholders’ equity?

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Common stock $2.00 par value per share, 23 million shares issued.......... Paid-in capital in excess of par value..... Retained earnings...... Treasury stock, at cost Total stockholders' equity. $ 46 58 285 (70) $319