The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity a Purchased $ 350,000 of common stock now held in treasury b Declared cash dividends in the amount of $ 260,000 c Paid the dividends in (b) d Issued 100,000 new shares of $ 0 10 par value common...

Req 1 Assets Liabilities Stockholders Equity a NE b NE c NE d NE e ...

The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity: a. Purchased $ 350,000

Question:

The annual report for Malibu Beachwear reported the following transactions affecting stockholders’ equity:
a. Purchased $ 350,000 of now held in treasury.
b. Declared cash dividends in the amount of $ 260,000.
c. Paid the dividends in (b).
d. Issued 100,000 new shares of $ 0.10 common shares for $ 2 per share.
e. Closed the Dividends account.
Required:
1. Indicate the effect (increase, decrease, or no effect) of each of these transactions on total assets, liabilities, and stockholders’ equity.
2. Prepare journal entries to record each of these events.
3. Prepare a statement of stockholders’ equity, assuming the following opening balances: Common Stock, $ 12,500; Additional Paid-In Capital, $ 190,000; Retained Earnings, $ 150,000; and Treasury Stock, $ 0. Net income for the current year was $ 270,000. 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...