1. The journal entry to record sale of repurchased stock is:

2. Describe the impact of a treasury stock transaction on total shareholders equity.

3. Explain why companies issue stock splits

---- Using a textbook example, compare the line items in equity before and after a stock split:

Before After

Split Split

Stockholders equity

Paid-in capital

Common stock, $10 par

Paid-in capital in excess of par value

Total paid-in capital

Retained earnings

Total stockholders equity

Outstanding shares