Equity Transactions Explain how and by what amount each of the following transactions affects individual stockholders’ equity accounts of Kline Company and total stockholders’ equity.

a. Kline Company authorizes the issuance of 200,000 shares of $2-par common stock and 100,000 shares of $50-par, 8 percent preferred stock.

b. 120,000 shares of common stock are issued for $15 per share.

c. 40,000 shares of preferred stock are issued for $52 per share.

d. Kline reports net income of $480,000.

e. The full annual dividend on the preferred stock is declared and paid.

f. A dividend of $1.00 per share is declared on the common stock, but is not yet paid.

g. A 5 percent stock dividend is declared on the common stock and distributed. On the date of declaration, the market price of the stock is $18 per share.

h. When the common stock price dips to $14 per share, Kline purchases 20,000 shares in the market and holds the shares in its treasury.