$)$ Choose the appropriate letter to match the description with the purpose and accounting effect of the type of stock transactio Choose the appropriate letter to match the description with the purpose and accounting effect of the type of stock transaction. Some letters will appear in more than one column and not all letters will necessarily be used. Some blanks will require more than one letter. Choose the appropriate letter to match the description with the purpose and accounting

effect of the type of stock transactir Choose the appropriate letter to match the

description with the purpose and accounting effect of the type of stock transaction. Some

letters will appear in more than one column and not all letters will necessarily be used.

Some blanks will require more than one letter.

A$.$ To obtain shares to reissue to employees as part of employee stock purchase plans.

B$.$ To increase the number of shares outstanding and decrease the per$-$share market price

while managing a company that you expect will struggle financially in the future.

C$.$ To reduce the number of outstanding shares to increase per$-$share measures of

earnings.

D$.$ To increase the number of shares outstanding and decrease the per$-$share market price

while signaling to financial statement users that the company expects significant future

earnings.

E$.$ To obtain shares that can be reissued as payment for purchases of other companies.

F$.$ To send a signal to investors that the company itself believes its own stock is worth

acquiring.

G$.$ Reduces stockholders' equity.

H$.$ Changes par value per share.

I. Changes Additional Paid$-$in Capital account balance.

J$.$ Reduces Retained Earnings.

K$.$ Does not affect any of the account balances that comprise stockholders equity.

Stock Split Large Stock Dividend Stock Repurchase

Purpose

Accounting Effect

A$.$ To obtain shares to reissue to employees as part of employee stock purchase plans.

B$.$ To increase the number of shares outstanding and decrease the per$-$share market price while managing a company that you expect will struggle financially in the future.

C$.$ To reduce the number of outstanding shares to increase per$-$share measures of earnings.

D$.$ To increase the number of shares outstanding and decrease the per$-$share market price while signaling to financial statement users that the company expects significant future earnings.

E$.$ To obtain shares that can be reissued as payment for purchases of other companies.

F$.$ To send a signal to investors that the company itself believes its own stock is worth acquiring.

G$.$ Reduces stockholders' equity.

H$.$ Changes par value per share.

I. Changes Additional Paid$-$in Capital account balance.

J$.$ Reduces Retained Earnings.

K$.$ Does not affect any of the account balances that comprise stockholders equity.