Assume Fast Foods of Texas, Inc , completed the following transactions during 2014, the companys 10th year of operations Feb 3 Issued 11,000 shares of common stock ($3 00 par) for cash of $296,000 Mar 19 Purchased 2,400 shares of the companys own common stock at $28 per share Apr 24 Sold 1,500 shar...

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Assume Fast Foods of Texas, Inc., completed the following transactions during 2014, the companys 10th year of

Question:

Assume Fast Foods of Texas, Inc., completed the following transactions during 2014, the company’s 10th year of operations:
Feb 3 Issued 11,000 shares of ($3.00 par) for cash of $296,000.
Mar 19 Purchased 2,400 shares of the company’s own at $28 per share.
Apr 24 Sold 1,500 shares of treasury for $34 per share.
Aug 15 Declared a cash on the 8,000 shares of $0.90 no-par preferred stock.
Sep 1 Paid the cash dividends.
Nov 22 Declared and distributed a 10% stock on the 98,000 shares of $3.00 par outstanding. The market value of the was $35 per share.

Requirements
1. Analyze each transaction in terms of its effect on the accounting equation of Fast Foods of Texas, Inc.
2. What impact did each transaction have on cash flows?

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...