Listed below are various transactions that a company incurred during the current year. Indicate the impact on

Question:

Listed below are various transactions that a company incurred during the current year. Indicate the impact on total stockholders’ equity for each scenario. Specifically state whether stockholders’ equity would “Increase,” “Decrease,” or have “No Effect” as a result of each transaction listed below. Consider each transaction independently.
_____ 1. A stock equal to 30% of the previously outstanding shares is declared.
_____ 2. New shares of are issued for cash.
_____ 3. Treasury shares of are purchased (assume the cost method).
_____ 4. Cash dividends are paid to shareholders.
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...