Consider each of the following transactions separately from every other transaction: a. Issuance of 57,000 shares of
Question:
Consider each of the following transactions separately from every other transaction:
a. Issuance of 57,000 shares of \($1\) par common at \($13.
b.\) Purchase of 1,800 shares of treasury stock (par value at \($0.50)\) at \($8\) per share.
c. Issuance of a 10% stock dividend. Before the dividend, 500,000 shares of \($1\) par common stock were outstanding; market value was \($9\) at the time of the dividend.
d. Sale of 200 shares of \($1\) par treasury stock for \($10\) per share. Cost of the treasury stock was \($5\) per share.
e. Split stocks 3-for-1. Prior to the split, 120,000 shares of \($10\) par common stock were outstanding.
Requirement 1. Identify whether each transaction increased, decreased, or did not change total stockholders’ equity.
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