E$2-6($Algo$)$ Determining Financial Statement Effects of Several Transactions $[$LO $2-1,$ LO $2-2,$ LO $2-5]$

Madison Shoes manufactures athletic shoes and sports apparel. Assume the following activities occurred during a recent year. The dollar amounts in $($a$)$ and $($b$)$ are presented $"$in millions," and the dollar amount in $($c$)$ is per share. When reporting

For each of these events, perform transaction analysis and indicate the account, amount $($in millions$),$ and direction of the effect on the accounting equation. Check that remains in balance after each transaction. $($Enter any decreases to account balances with a minus sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should be enteriamounts $"$in millions," exclude the $000,000.$

a$.$ Purchased $$228$ in equipment; paid by signing a $$4$ long$-$term note and fulfilling the rest with cash.

b$.$ Issued $$25$ in additional common stock for cash contributions made by stockholders.

c$.$ Several Madison Shoes investors sold their own stock to other investors on the stock exchange for $$170$ per share of stock.

Required:

For each of these events, perform transaction analysis and indicate the account, amount $($in millions$),$ and direction of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction.

Which statement best describes transaction $(C?$

Did these transactions change the extent to which Madison Shoes relied on creditors versus stockholders for financing?