Consider each of the following transactions separately from every other transaction:
a. Issuance of 57,000 common shares at $13.
b. Purchase of 1,800 treasury shares at $8 per share.
c. Issuance of a 10% stock dividend. Before the dividend, 500,000 common shares were outstanding; market value was $9 at the time of the dividend.
d. Split shares 3-for-1. Prior to the split, 120,000 common shares were outstanding.
Requirement
Identify whether each transaction increased, decreased, or did not change total shareholders’ equity.