Abby Company has beginning of year balances as follows:

Common stock, 12,000 shares $ 6,000

APIC 47,000

Retained earnings 38,000

The following transactions occurred in this order during the year:

A 2-for-1 stock split with the par value being proportionately reduced.

4000 shares of treasury stock purchased at $52 per share.

Bonds payable of $9000 were converted into 3000 shares of common stock.

800 shares of treasury stock were sold for $60 per share.

A cash dividend of $2 per share was declared and issued.

Net income was $28,000.

Which of the following is true?

1. Common stock increased by $1500, APIC increased by $6400, and Treasury stock increased by $166,400.
2. APIC increased by $14,650, Treasury stock increased by $160,000 and Retained Earnings decreased by $19,600.
3. Common stock increased by $750, APIC increased by $14,650, and Retained Earnings decreased by $19,600.
4. Treasury stock increased by $166,400 and Retained Earnings decreased by $20,000.

No errors were found in the above question