An owner of $2,500$ shares of Simmons Company common stock receives a stock dividend of $50$ shares.

a$.$ What is the effect of the stock dividend on the stockholder's proportionate interest $($equity$)$ in the corporation?

b$.$ How does the total equity of $2,550$ shares compare with the total equity of $2,500$ shares before the stock dividend?

a$.$ Where should a declared but unpaid cash dividend be reported on the balance sheet?

b$.$ Where should a declared but unissued stock dividend be reported on the balance sheet?

What is the primary purpose of a stock split?

A corporation reacquires $60,000$ shares of its own $$10$ par common stock for $$3,000,000,$ recording it at cost$.$

a$.$ What effect does this transaction have on revenue or expense of the period?

b$.$ What effect does it have on stockholders' equity?

The treasury stock in Discussion Question $7$ is resold for $$3,750,000.$

a$.$ What is the effect on the corporation's revenue of the period?

b$.$ What is the effect on stockholders' equity?