The following are possible transactions that affect shareholder’s equity:

1. A company issues common stock above par value for cash.

2. A company declares a 3-for-1 stock split.

3. A company repurchases 10,000 shares of its own common stock in exchange for cash.

4. A company declares and issues a stock dividend. Assume that the fair market value of the stock is greater than the par value.

5. A company reissues 1,000 share of treasury stock for $75 per share. The stock was acquired for $60 per share.

6. A company pays a cash dividend that had been declared fifteen days earlier.

7. A company generates net income of $250,000.

For each transaction above, indicate the following:

(a) The accounts within the shareholder’s equity section that would be affected.

(b) Whether these accounts would be increased or decreased.

(c) The effect (increase, decrease, or no effect) of the transaction on the total shareholders’ equity.