Microsoft Corporation is one of the world’s leading developers and retailers of PC software. Presented below are excerpts from Microsoft’s June 30, 2016 annual report regarding its shareholders’ equity:

Required Prepare a list of the key events and their financial effects that impacted Microsoft’s shareholders’ equity in 2016. Where possible, explain why these transactions occurred. You may wish to access Microsoft’s 2016 annual report at www.microsoft.com to assist you with your answer.

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Shareholders' Equity Statements Year Ended June 30 (In millions), 2016 2015 2014 Common stock and paid-in capital Balance, beginning of period. Common stock issued.. $68,465 668 $68,366 $67,306 634 607 Common stock repurchased (3,689) (3,700) (2,328) Stock-based compensation expense 2,668 2,574 2,446 Stock-based compensation income tax deficiencies 0 588 272 Other, net.... 66 3 63 Balance, end of period. 68,178 68,465 68,366 Retained earnings Balance, beginning of period. 9,096 17,710 9,895 Net income.... 16,798 12,193 22,074 Common stock cash dividends (11,329) (10,063) (9,271) Common stock repurchased. (12,283) (10,744) (4,988) Balance, end of period... 2,282 9,096 17,710 Accumulated other comprehensive income: Balance, beginning of period 2,522 3,708 1,743 Other comprehensive income (loss)* (985) (1,186) 1,965 Balance, end of period 1,537 2,522 3,708 Total stockholders' equity $71,997 $80,083 $89,784