Question: Sweet Sixteen has two classes of stock authorized 100 par

Sweet Sixteen has two classes of stock authorized: $100 par preferred and $1 par value common. As of the beginning of 2015, 1,000 shares of preferred stock have been issued and 20,000 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2015:
March 1 Issue 3,000 additional shares of common stock for $22 per share.
April 1 Issue 5,000 additional shares of preferred stock for $110 per share.
June 1 Declare a cash dividend on common stock of $1 per share and a cash dividend on preferred stock of $5 per share to all stockholders of record on June 15.
June 30 Pay the cash dividends declared on June 1.
August 1 Purchase 2,000 shares of common treasury stock for $18 per share.
October 1 Reissue 1,000 shares of treasury stock purchased on August 1 for $20 per share.
Sweet Sixteen has the following beginning balances in its stockholders’ equity accounts on January 1, 2015: preferred stock, $100,000, common stock, $20,000; paid-in capital, $380,000; and retained earnings, $450,000. Net income for the year ended December 31, 2015, is $65,000.

1. Record each of these transactions.
2. Indicate whether each of these transactions would increase (+), decrease (−), or have no effect (NE) on total assets, total liabilities, and total stockholders’ equity by completing the following chart.

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  • CreatedJuly 15, 2014
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