Assume ABC Cupcakes of Montana, Inc., completed the following transactions during 2012, the company€™s 10th year of operations:

Requirement
1. Analyze each transaction in terms of its effect on the accounting equation of ABC Cupcakes of Montana,Inc.

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Feb 3 Mar 19 Apr 24 Issued 10,000 shares of common stock ($3.00 par) for cash of $280,000. Purchased 2,700 shares of the company's own common stock at $24 per share. Sold 1,400 shares of treasury stock for $26 per share. Declared a cash dividend on the 16,000 shares of $0.50 no-par Aug 15 preferred stock. Paid the cash dividends. Distributed a 20% stock dividend on the 94,000 shares of $3.00 Sep 1 Nov 22 par common stock outstanding. The market value of the common stock was $25 per share.