Identify the effects of the following transactions on total stockholders' equity: Each transaction is independent. a. A

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Identify the effects of the following transactions on total stockholders' equity: Each transaction is independent.

a. A \(10 \%\) stock dividend. Before the dividend, 500,000 shares of \(\$ 1\) par common stock were outstanding; market value was \(S 6\) at the time of the dividend.

b. A 2 -for- 1 stock split. Prior to the split, 60,000 shares of \(S 4\) par common were outstanding. 

c. Purchase of 1,000 shares of treasury stock (par value \(\mathrm{S} 0.50\) ) at \(\$ 5\) per share. 

d. Sale of 600 shares of \(S 1\) par treasury stock for \(\$ 5\) per share. Cost of the treasury stock was S2 per share. 

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Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

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