Identify the effects of these transactions on total stockholders' equity. Each transaction is independent. a. Purchase of
Question:
Identify the effects of these transactions on total stockholders' equity. Each transaction is independent.
a. Purchase of 1,500 shares of treasury stock (par value \(\$ 0.50\) ) at \(\$ 4.25\) per share.
b. Fifty-percent stock dividend. Before the dividend, \(1,000,000\) shares of \(\$ 2\) par common stock were outstanding; market value was \(\$ 13.75\) at the time of the dividend.
c. Issuance of 50,000 shares of \(\$ 10\) par common at \(\$ 16.50\).
d. Ten-percent stock dividend. Before the dividend, 500,000 shares of \(\$ 1\) par common stock were outstanding; market value was \(\$ 7.625\) at the time of the dividend.
e. Sale of 600 shares of \(\$ 5\) par treasury stock for \(\$ 9.00\) per share. Cost of the treasury stock was \(\$ 6.00\) per share.
f. Three-for-one stock split. Prior to the split, 60,000 shares of \(\$ 4.50\) par common were outstanding.
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Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.