Shown below are some equity transactions for Stefanek Ltd., a new company, which reports under IFRS.

Instructions

For each, state whether common shares, retained earnings, and cash flow will increase, decrease, or remain unchanged. Quantify the amount of any increases or decreases.

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Transaction Issued 10,000 common shares at $2.85 per share. Declared a dividend of $0.55 per share. Issued 5,000 common shares in exchange for a piece of equipment. The company's shares were trading at $3.25 per share at the date of the transaction. The equipment had a retail value of $17,000. Paid the dividend of $0.55 that had been declared previously. Declared and distributed a 10% stock dividend. The company's shares were trading at $3.30 per share. Repurchased 2,000 common shares at a price of $3.00 per share. The repurchased shares were cancelled. Completed a 2-for-1 stock split. Common Retained Shares Earnings Cash Flow