Assume Dessert Corner, Inc., completed the following transactions during 2021, the company’s 10th year of operations: 

Requirements 

1. Analyze each transaction in terms of its effect on the accounting equation of Dessert Corner.

2. What impact did each transaction have on cash flows?

Transcribed Image Text:

Feb 3 Mar 19 Apr 24 Aug 15 Sep 1 Nov 22 Issued 20,000 shares of common stock ($2.00 par) for cash of $520,000. Purchased 2,900 shares of the company's own common stock at $19 per share. Sold 2,500 shares of treasury common stock for $32 per share. Declared a cash dividend on the 16,000 shares of $0.20 no-par preferred stock. Paid the cash dividends. Declared and distributed a 15% stock dividend on the 95,000 shares of $2.00 par common stock outstanding. The market value of the common stock was $24 per share.